The price decline for Nitric Acid has persisted into December 2022 in the European market. European producers reduced production rates and advanced plant maintenance schedules due to weak demand. However, there is enough material on hand to meet convertors' needs. Nitric Acid Producers are interested in sending more of their shipments to Europe as the European prices and freight rates are on the lower side currently.

The European Nitric Acid price declined to USD 450/MT in November 2022 due to dropping feedstock Ammonia costs, with a contract recorded on imported Ammonia from Trinidad at USD 1,052.50 - down from USD 1,125 CFR duty paid three weeks ago. Speculation about the future Ammonia price is intensifying with Putin again restricting natural gas supplies to Europe, and thus the TTF natural gas price is again on the increase. Through November 2022, China's Ammonia imports fell 70% to 194,917 MT from 754,825 MT.

A decrease in worldwide feedstock (Natural gas and Ammonia) has been caused by deteriorating purchasing power and an abundance of supply in producing countries. Natural gas costs have weakened the fundamentals of the entire Nitric Acid market. On the other hand, China, a global powerhouse, has put several strict quarantine restrictions in place, which has led to the suspension of trade activity. These occurrences have resulted in supply chain issues, fluctuating Nitric Acid prices, and rising inflation in many European countries.

Considering the output rates, it can take time for the manufacturers to resume operating at their average speed and meet demand. The country's inflation rate has declined, but the results have not yet materialized. Significant companies had scaled back production due to the high natural gas prices. Farmers worldwide will likely reduce the amount of nitrogen fertilizer, including Nitric Acid, as the cost of essential crop input rises.

Nitric Acid 98% FOB Hamburg (Germany) prices were evaluated at USD 433/MT in the most recent monthly pricing analysis by ChemAnalyst.

According to ChemAnalyst, the regional supply of Nitric Acid in Europe will increase by about 15-20% in the upcoming quarter. According to ChemAnalyst, the market for Nitric Acid, which makes up most of the European production, is predicted to have a promising future.