Asia's nitric acid market has been trending downward as regional market dynamics have been altered by pandemic-related restrictions resulting from China's controversial zero-covid policy and logistical constraints in the South Korean market in recent months. According to the analysis, Nitric Acid prices have continued to fall during the first week of August, hampered by decreased demand from the domestic downstream Ammonium Nitrate segment.

On August 1, the ex-factory price of Anhui Jinhe concentrated nitric acid 98% was lower than the previous week, while the price of 68% Nitric Acid remained unchanged in the Chinese market. The nitric acid shipment was not without incident. Ningxia Runxia Energy Chemical Co., Ltd. produces 150,000 tonnes of 98% concentrated nitric acid annually. Because downstream demand for Nitric Acid remained flat, the price remained low. It is expected that inefficient operations in China will dominate nitric acid.

According to a reliable market source, despite some recovery from the pandemic, demand for Nitric Acid in China has not recovered; the country is still struggling to gain traction over its economic momentum. The Indian market for Nitric Acid fertilizer and explosives has been the backbone of the country's economy, which has performed poorly in recent quarters. As a result, demand fundamentals for Nitric Acid from Nitrobenzene and Ammonium Nitrate manufacturers have fallen.

Furthermore, raw material prices are falling due to the restricted oil and gas supply. When asked, one of the Korean merchants stated that the global recession had impacted the traders due to the decline in commodities prices.

According to ChemAnalyst, "Nitric acid prices are projected to stay low in the coming months since demand from both the domestic and international markets is unlikely to recover anytime soon. Furthermore, market buying emotions may remain low due to lower consumer demand. Furthermore, the worldwide market slump may further depress the Nitric Acid industry."