The Hydrogen price trend was weak in March 2023 due to the dampened demand and depressing consumption rates from Ammonia producers because of available oversupplies in the European market. Simultaneously, the feedstock Natural Gas costs slumped during the Quarter 1 of 2023, which reduced the cost pressure on Hydrogen. According to the data sources, Hydrogen prices plummeted in Germany by 30% during March 2023. Also, the demand for Green Ammonia declined in the region due to an oversupply of Blue Ammonia at lower costs.

Last month, the regional importers decided to reduce their dependency on US Hydrogen exports due to the surplus availability of Natural Gas supplies in the region and planned to increase domestic manufacturing of Hydrogen.

However, the key feedstock Natural Gas prices oscillated in Europe and remained volatile during the month. At the end of the month, Natural Gas prices rose, increasing Hydrogen production costs, and domestic importers turned to US exporters to fulfill their needs.

The demand dynamics for Hydrogen shifted amid volatile feedstock Natural Gas prices and fluctuating demand from the downstream sector. Simultaneously, the inquiries remained sluggish in Ammonia and Nitric Acid industries because of weak orders from Acrylonitrile and fertilizer producers. At the end of March 2023, Hydrogen discussions in the Netherlands settled at USD 9053/MT.

As per the reports, the European Council proposed Alternative Fuel Infrastructure Regulation (AFIR) to reduce Carbon footprints and identified Hydrogen use as an alternative fuel for heavy-duty vehicles in the logistics sector.

According to ChemAnalyst, "European Hydrogen Prices are likely to rise in upcoming months due to the increased demand from Ammonia producers. As per several economic research reports, it is highly likely that Europe is heading toward food inflation amid reduced fertilizer imports from Russia. Furthermore, the feedstock Natural Gas prices are still volatile, and the price trend will likely revamp and raise the product's production costs."