Global Nitric Acid prices saw a marked increase during the first half of October 2024, with particularly sharp rises in North America and Europe. This surge can be attributed to a combination of supply shortages and escalating costs for essential raw materials, especially Ammonia and Natural Gas. Supply limitations intensified as these key feedstock prices rose, increasing the overall production costs for Nitric Acid and constraining availability. Demand, although moderate, showed some improvement due to a modest revival in the downstream fertilizer market, further influencing price dynamics. This convergence of factors has led to notable upward pressure on Nitric Acid prices globally, as producers face both supply and cost challenges amid shifting demand trends.

In Europe, Nitric Acid prices experienced substantial upward pressure due to strong demand throughout the supply chain, particularly from the agricultural sector in Eastern and Northern Europe. Farmers preparing for seasonal applications drove this increased demand, placing considerable strain on the already limited Nitric Acid supply and accelerating price inflation. In response, European producers raised production rates to meet the heightened demand; however, escalating costs for key feedstocks, particularly Ammonia and Natural Gas, added further financial strain. These ongoing cost increases for essential inputs intensified production expenses, sustaining and reinforcing the rise in Nitric Acid prices across the region.

Meanwhile, in North America, the Nitric Acid market experienced similar upward pressure, largely driven by weather-related disruptions. Recent hurricanes and Tropical Storm Milton, which closely followed Hurricane Francine, significantly disrupted agricultural operations, halting crop progress and constraining fertilizer production and retail distribution. These adverse conditions tightened supply chains, further limiting Nitric Acid availability. Additionally, a force majeure at LSB Industries’ facility in Cherokee, Alabama, which typically produces approximately 2,043 tons per month, added further strain as the plant halted operations from October 1^st to October 12^th. The convergence of extreme weather impacts, supply disruptions, and production halts has led to notable price escalation in the North American Nitric Acid market.  This combination of supply shortages, rising input costs, and regional demand fluctuations has created a climate of sustained upward pressure on global Nitric Acid prices, with manufacturers and end-users closely monitoring supply dynamics and cost developments as the season progresses.

On the demand side, a moderate recovery was seen in the fertilizer sector, spurred by preparations for the upcoming winter planting season in the region. Additionally, demand for key downstream derivatives, such as Glyoxylic Acid, remained steady. Seasonal festivities further bolstered demand in the cosmetics and haircare industries, contributing to an increase in Nitric Acid consumption.

According to ChemAnalyst, Nitric Acid prices in the global market are anticipated to rise, primarily driven by heightened demand for fertilizers as preparations ramp up for the forthcoming winter planting season. This seasonal demand is expected to exert upward pressure on Nitric Acid prices, with the agricultural sector playing a significant role in supporting the market’s upward trend.