In the first half of March 2025, the market for hydrogen peroxide was seen to be stable and on course.  An balance in the market fundamentals and the stabilization of energy costs were the main drivers of this price stability.  Little changes in energy prices were seen in the market, which helped to maintain the steady production of hydrogen peroxide.

The demand for hydrogen peroxide from key downstream sectors like the paper, pulp, and textile sectors was observed to be tepid. The combination of the absence of any upward pressure from the supply chain and weak demand led to steady market dynamics and ultimately stable prices in the market.

Supply-wise, natural gas prices stabilized in the market amid a drop in the futures after the EIA reported a larger-than-expected inventory build in the previous week. Steady energy costs ensured firm production expenses and thus firm production of hydrogen peroxide in the market. The supply of hydrogen peroxide continued to be steady in the market despite tepid demand from downstream sectors.

The supply chain operated smoothly, so prices were not significantly impacted by a few plant shutdowns in early March, such as those at Eka Chemicals Inc.  A stable supply in the market was further guaranteed by efficient inventory management, which bolstered the steady pricing trend.

The inquiries for hydrogen peroxide from key downstream sectors showed mixed trends. The bleaching demand from the paper and pulp sector faced downward pressures amid declining paper shipments in the previous month. Overall purchases of printing and writing papers dropped in February 2025, reflecting the declining consumption trend of hydrogen peroxide in the market.

Additionally, there were mixed dynamics in the demand for hydrogen peroxide in the U.S. textile industry, which were driven by uncertainty surrounding international trade and factory expansion.  Supply chains and procurement plans became uncertain as a result of the ongoing tariff revisions, especially those aimed at Chinese imports, which reflected conflicting patterns in demand dynamics.  Overall, the market's consistent supply kept up with the current low demand, preventing any notable shifts in the price patterns.

Moving further, as per ChemAnalyst database, the hydrogen peroxide prices are expected to remain stable or may witness some slight upward pressure in the upcoming weeks. Further improvement in demand from the paper and pulp industry drives this expectation. Additionally, increased production costs influenced by fluctuations in raw material prices and energy expenses could further contribute to price adjustments. As industrial activities gain momentum and demand rebounds, manufacturers may find room to adjust pricing to maintain profit margins.