Global hydrogen peroxide plant maintains high operating rates
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Steve Rogers, a consultant with London-based Harriman Chemsult, pointed out that in 2006, the demand for hydrogen peroxide in the North American market grew by 1%. However, Rogers said that due to the closure of some paper mills in the United States, the demand for hydrogen peroxide in the North American market in 2007 will grow at the same level as in 2006. Arkema has recently expanded its hydrogen peroxide plant capacity in Becancour, Quebec, Canada, from the previous 20,000 tons/year to 93,000 tons/year. After the expansion was completed, Arkema’s hydrogen peroxide production capacity in North America reached 163,000 tons/year, accounting for approximately 20% of the North American market.
Rogers stated that Degussa and some other hydrogen peroxide producers are expanding their hydrogen peroxide production capacity in South America because of strong demand in the pulp and paper market in the region. Degussa is expanding its hydrogen peroxide plant in Brazil's Barra do Riacho, which will have a production capacity of more than 70,000 tons/year, while retaining the possibility of further expansion.
SRIC said that in 2007, the growth rate of demand for hydrogen peroxide market in Europe is expected to be 3%, which is lower than the growth rate of 4% to 5% in 2006. However, according to Abrams, the demand for hydrogen peroxide in the European pulp and paper market is still strong, and some installations in the region are currently in expansion. However, manufacturers are more worried about the rising cost of raw materials. Solvay is currently building a new 230,000 tonne/year hydrogen peroxide plant in Antwerp, Belgium, which is expected to start production in January 2008.
The hydrogen peroxide market in Asia is rapidly expanding. The expansion of hydrogen peroxide production capacity in the region, especially in China, is prompting a dramatic increase in hydrogen peroxide exports in the region, and producers are concerned about possible future price pressures.