Throughout the initial half of April 2024, the global Nitric Acid market remained soft to stable, characterized by a narrowed demand and supply gap. The market trend was chiefly attributed to a reduction in demand emanating from significant downstream fertilizer markets, parallel with decreased agricultural planting activities, which collectively exerted downward pressure on prices. However, the price of crucial feedstock, namely Ammonia, exhibited fluctuations within the global market landscape during this period. Nevertheless, its impact on Nitric Acid prices remained somewhat mitigated, thus tempering the overall cost pressures experienced by the industry.

During the initial half of April 2024, the Chinese Nitric Acid market displayed soft to stable market sentiments. Notably, prices underwent a decline of 1.6% within the initial week of the month, although subsequently stabilizing. This downward trajectory can primarily be ascribed to several factors, notably including an oversupply of the material within the market and diminished demand originating from prominent downstream fertilizer markets. Surveys conducted have shed light on the operations of terminal enterprises within the country, indicating their sustained operation at heightened capacities, thereby contributing to the surplus availability of Nitric Acid in the market.

Furthermore, insights garnered from multiple market participants have revealed a noteworthy surge in Nitric Acid production within China. Reported output levels ranged impressively between 150,000 to 200,000 tons per day, representing the highest recorded production rate in the past five years. Concurrently, demand for Nitric Acid from the prominent downstream fertilizer industry began to witness a gradual recovery in anticipation of the forthcoming Barley and Oats planting season within the country. However, this resurgence fell short of expectations, primarily due to unfavourable weather conditions and rainstorms, which served to mitigate any substantial impact on Nitric Acid prices.

Similarly, within the European market, Nitric Acid prices exhibited a bearish trend owing to diminished demand from end-user fertilizer market attributed to unfavourable weather conditions prevailing within the region. Findings from various surveys underscored a notable decline in demand, albeit with isolated exceptions observed in selected areas, notably within the northern segment of the region. A key factor behind this alteration in demand dynamics was the enduring and substantial influence of heightened rainfall experienced across northern European territories in recent weeks. This protracted period of precipitation effectively delayed the prevailing agricultural season, consequently inducing delays in the application of fertilizers, including Nitric Acid.

According to the analysis conducted by ChemAnalyst, it is forecasted that the Nitric Acid market will undergo a downward trend in the upcoming months. This expectation is chiefly driven by an anticipated decline in seasonal demand coupled with an anticipated increase in inventories. These insights highlight the significance of taking into account seasonal variations and inventory levels when evaluating the prospective trajectory of the Nitric Acid market.