Page 134 - CW E-Magazine (5-12-2023)

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MARKET TRENDS

Hydrogen peroxide market to stay long despite

changes in trade fl ows

The Indian market for hydrogen
peroxide, a basic chemical used in a 25,000
wide range of applications, including
pulp & paper bleaching, textile, clean- 20,000
ing, disinfection, electronics, and food
segments, is likely to stay in surplus, 15,000
amidst a surge in imports following Metric Tons
the removal of anti-dumping duty 10,000
(ADD) on imports from select coun- 5,000
tries, slowing of domestic demand, and
despite a surge in exports. 0
2021 2022 2023
India is one of the largest producers Bangladesh Thailand
of hydrogen peroxide in Asia. Growth Source: Chemical Market Analytics by OPIS
in production in the country has been
historically supported by increasing
demand in the paper & pulp industry, as 9000
well as in the textile segment. However, 8000
over the last decade, the signifi cant 7000
growth in hydrogen peroxide demand 6000
in the country has made the Indian mar- 5000
ket more attractive for imports. This Metric Tons
uptrend in imports accelerated in the 4000
mid-2010s, causing a surplus of hydro- 3000
gen peroxide, until it reached a level 2000
where domestic producers had to cut 1000
their production rates. In response to 0
these challenges, and at the prodding of 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2
two domestic producers, the Directorate Senegal Turkey Russia Nigeria Ghana
General of Anti-Dumping (DGAD) Source: Chemical Market Analytics by OPIS
imposed an ADD on imports of the Although a hike in exports to other this is due to the signifi cant investment in
chemical from six countries: Bangla- regions, particularly Russia, has helped hydrogen peroxide capacities done over
desh, Taiwan, South Korea, Indonesia, offset some of this excess, domestic the last few years, partly driven by some
Pakistan and Thailand, effective for demand remains weak, particularly chlor-alkali producers trying to fi nd an
fi ve years. from the textiles sector, due to the im- outlet for their hydrogen,” she noted. The
pact of high infl ation rates globally on situation is unlikely to change in 2024, as
According to an analysis by Ms. consumer spending. “Given the current two new capacities are expected to come
Kelly Low, Senior Research Analyst, economic situation, no signifi cant im- on-stream. In the mid-to-long term, CMA
Chemical Market Analytics (CMA), a provement is expected through the rest expects demand in textile, and some
consultancy, the removal of the ADD of the year, with the market expected other applications, will recover and support
at its expiry in 2022 prompted an in- to remain on the long side of the bal- overall consumption for hydrogen per-
crease in imports, particularly from ance,” Ms. Low said on a blog post on oxide, while developments in trade fl ows
Bangladesh, which coupled with weak the CMA website. will continue to play an important role in
demand has led to a surplus situation in the overall supply and demand balance in
India, which persists to date. “Some market players believe that the country.

134 Chemical Weekly December 5, 2023

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