Throughout the initial fortnight of February 2024, the global Nitric Acid market showed a pessimistic sentiment, similar to the trend observed in January 2024. The continuous decline in the prices of key raw materials, particularly Natural Gas and Ammonia, has led to a reduction in production costs, thereby providing an ease to Nitric Acid prices. Furthermore, diminished demand from crucial end-user fertilizer sectors, in combination with continuing trade uncertainties and adverse domestic weather conditions, stand out as significant factors contributing to the declining trajectory of Nitric Acid prices.

In the first half of February 2024, the Nitric Acid market in the United States exhibited a pessimistic outlook, primarily driven by an oversupply of material domestically and subdued demand both domestically and internationally. Demand for Nitric Acid and its essential derivative products, including Urea Ammonium Nitrate (UAN) and Ammonium Nitrate (AN), remained limited in the domestic fertilizer market following the culmination of the peak planting season. Moreover, demand from Brazil, a significant importer, was curtailed during this period due to Carnival celebrations, traditionally resulting in a temporary slowdown in agricultural activities and decreased fertilizer demand. This cyclic trend during the Carnival season sees agricultural workers engaging in festivities, leading to a decrease in fertilizer demand. The situation was further compounded by substantial stockpiles of Nitric Acid within the country. Throughout this period, domestic manufacturing units operated at a satisfactory rate, resulting in ample inventories to cater to the requirements of end-user markets. The intricate interplay of these factors has resulted in a narrowing of the gap between demand and supply, thereby reinforcing the ongoing downward trend in prices.

Similarly, the European Nitric Acid market encountered bearish sentiments throughout February 2024. The ongoing conflict in the region has undoubtedly posed significant challenges for European farmers, resulting in diminished demand for Nitric Acid and negligible upward pressure on prices within the country. Presently, the peak planting season within the country has concluded, and acquisitions for Nitric Acid and its derivatives, including Ammonium Nitrate, have remained constrained. Despite this, insights from various market participants indicate that German farmers have commenced seeking spring fertilizer volumes; however, these inquiries have yet to translate into substantial demand for Nitric Acid. Nonetheless, domestic Nitric Acid production remains steady, with companies such as RivneAzot and CherkassyAzot maintaining their production lines as per routine. Furthermore, Middle Eastern producers have been fulfilling existing contracts and have shown no inclination towards offering spot Nitric Acid in the German market.

As per ChemAnalyst's forecast, it is anticipated that Nitric Acid prices will persist in their downward trajectory in the forthcoming days, propelled by the diminishing prices of crucial feedstock materials and subdued demand.