In the first half of August 2024, Nitric Acid prices in Europe experienced a notable surge, driven by several key factors. The escalation in feedstock prices, particularly Ammonia, significantly increased production costs, exerting upward pressure on Nitric Acid prices. Meanwhile, in the Asian market, prices were almost stable with a slight uptick, driven by strong export interest and supply constraints due to upcoming plant maintenance, contributing to a tighter supply situation.

The European market grappled with severe shortages due to reduced manufacturing activities, labour shortages exacerbated by summer holidays, and persistent port congestion. These issues were further compounded by trade uncertainties and delayed exports, which increased import costs and strained the supply chain. Despite these pressures, domestic demand for Nitric Acid in Europe remains variable, influenced by adverse weather conditions impacting agriculture and slower-than-expected demand for downstream products.

Despite this, the demand for Nitric Acid on the domestic market is still variable. The EU domestic market has been particularly affected by weather conditions, including heavy rains in Austria, France, Italy, Germany and the Netherlands. These types of weather have adversely affected crop growth and hampered agricultural production throughout the region and nearby areas. The challenges posed by unpredictable weather conditions have created uncertainty in the agricultural industry which is particularly affected by the demand for Nitric Acid. Additionally, demand for downstream products, such as adipic acid, has been slower than previously thought. However, the explosives industry has shown a low level of demand, which has helped support the current Nitric Acid price trend.

Similarly, in the Asian market, Nitric Acid prices were almost stable with a slight uptick in prices. This marginal increase can be attributed to a combination of factors, including heightened export interest from key international markets such as South America, the Philippines, and South Korea. Market insights reveal that many suppliers are fully committed for August shipments, with some also booked for mid-September cargoes, indicating a tight supply situation. Additionally, the market has been influenced by increased domestic demand and the upcoming scheduled maintenance of several Nitric Acid production plants, which is expected to further constrain supply. The intricate interplay of these supply constraints and robust demand has widened the gap between supply and demand, thereby driving the recent price hike in the Chinese market.

According to ChemAnalyst, Nitric Acid prices are projected to rise in the forthcoming months due to a shortage of raw materials and an anticipated resurgence in demand.