By The End Of February 2022, The Price of Dilute Nitric Acid in South Korea May Rise By 4-5 Percent Due To Rising Input Costs

Because of a paucity of supplies, Nitric Acid costs in South Korea have been continuously climbing since January. According to ChemAnalyst's database, the average price of domestic concentrated Nitric Acid 98% FOB Busan in January was USD 235/MT. South Korea controls a significant portion of the global Nitric Acid market, accounting for 21%. On the back of growing input costs and rising inflation, Nitric Acid purchases in the domestic and foreign market began to see a significant increase in pricing and downstream derivatives in February.

At the start of the month, the upstream liquid Ammonia market was mostly steady. Manufacturing activity increased in the export powerhouses of South Korea, despite supply chain disruptions and raw material shortages driving up costs. South Korean consumer prices increased 3.6 percent year over year in January 2022. As increasing costs of oil and other raw materials, as well as agricultural items, continued to add to inflationary pressure. Inflation in South Korea has remained above 3% since October.

Nitric Acid (HNO3) is a chemical formed when ammonia, water, and a catalytic agent combine. The product is utilised as a cleaner in the semiconductor chip production and electronic display, in agrochemicals and manufacturing processes. Because of the high initial investment costs and significant flammability of the substance, the Nitric Acid industry has been seen as a market with high entry barriers. Based on long-term contracts with Hanwha, Hanwha Solutions, OCI, and BASF Korea, Hu-Chems has had a near monopoly in the segment for decades. According to ChemAnalyst, demand for Nitric Acid will likely continue to rise this year as the economy recovers. Therefore, it is anticipated that prices for Dilute Nitric Acid and Nitric Acid % grade will continue to surge.