The prices for hydrogen peroxide in the USA market seemed tamed during the December month owing to the retraction in the international natural gas feedstock prices as well as year-end festive season slowdown in the market transactions. However, the market is expected to rebound soon in Q1 2022 on a bullish demand outlook and mounting pressure from the rising feedstock futures.

The average prices for Hydrogen Peroxide in December month were assessed to be USD 585/MT FOB Illinois, down by 8.6% from the prices observed in November. The small respite in the energy prices from record-breaking levels, and improvement in the international supply-chain dynamics with easing marine trade constraints marked for the lower contracts in December. In addition, the Christmas and New Year holidays in the USA brought a temporary halt in the downstream and end-user activities leading to muted demand fundamentals.

Now that the festive season is over, the hydrogen peroxide market in the USA is expected to gain traction. As per the exclusive revelation made by a market participant, the manufacturers in the USA are planning to revise the hydrogen peroxide prices to the higher side on the back of soaring natural gas prices all over again. Furthermore, the demand prospects in sterilization and disinfectant applications also look positive as the country struggles with consistently rising Omicron cases.

As per ChemAnalyst, the demand fundamentals of hydrogen peroxide in the USA are expected to surge in Q1 2022 due to the increase in the consumption rate by the consumers who are bound to increase the cleaning and hygiene practices with Omicron cases at large. High demand, as well as the increasing feedstock prices will play a pivotal role in extending upward cost pressure on Hydrogen Peroxide prices. As no significant increment in Hydrogen Peroxide supply is foreseeable, the manufacturers will be opting for high price revisions in their offered contracts in order to earn considerate netbacks. According to the ChemAnalyst market analysis, the hike in Hydrogen Peroxide prices may go up to 4% in Q1 2022.