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The economic radius for hydrogen peroxide is often cited as around 500 kilometers due to its instability and explosion risk. This explains why China's capacity is fragmented across many sites rather than concentrated. Buyers should watch regional supply-demand balances more than national averages when negotiating contracts.
The oversupply in standard grades is pressuring margins, pushing producers toward higher-value segments like semiconductor-grade hydrogen peroxide. However, purification technology and quality control remain barriers. Watch for capacity rationalization among smaller players as price competition intensifies.