Nitric Acid prices in Germany continued to decline in December, appearing to have bottomed out since the previous quarter. As a result, the price of 98% Nitric Acid has dropped to USD 426/MT FOB Hamburg (Germany), a three-month low in December.

Prices have steadily fallen due to slowing domestic demand from downstream Ammonium Nitrate and a surplus of goods in the German market. Additionally, exports at favorable prices continue to enter the country steadily. Analysts noted that suppliers maintained their position despite decreased demand by lowering production rates. Although a rise in the contract price for raw material Ammonia was anticipated in December 2022, suppliers have opted to overlook some profit because of the significant quantities of imported Nitric Acid.

Despite suppliers' lower output, sources claimed that there was still an abundant material supply and that it was still possible to make spot purchases at substantial discounts. According to ChemAnalyst, processors who have depleted their stockpiles have consistently had a significant demand for packaged truckloads. These sources saw indications that Nitric Acid prices had peaked and were forecast flat to slightly lower prices for November and December.

Meanwhile, the recent emergency shutdown of the Ammonia manufacturing plant has forced Neochim, a producer of fertilizers in Bulgaria, to halt output at its Ammonium Nitrate and Nitric Acid units. The company stated in a market statement that the restart of production depends upon resolving the technical problem at the Ammonia facility.

According to ChemAnalyst, Nitric Acid costs may not change this month, but they could go up if Ammonia prices increase once again. Given that the demand for Nitric Acid in the worldwide market is decreasing and that China is starting to routinely export the substance, making it the newest rival for American suppliers, more price reductions are also anticipated after the fourth quarter.