The regional dynamics of the Nitrogen market in Europe have been impeded by falling energy prices, which has resulted in a declining trend in the market for Nitric Acid. A decline in demand from the domestic downstream Ammonium Nitrate segment stopped prices for Nitric Acid from rising during the first week, according to ChemAnalyst analysis. As a result of the limited supply of oil and gas, the price of raw materials like Ammonia is also decreasing. As a Ripple effect, The Nitric Acid FOB Hamburg prices were seen declining at $417 per MT as of January 2023, down 2% from the values seen last month.

While production costs fell in January, prices for Nitric Acid fell. Lower Natural Gas prices led to more feedstock factories in Europe reopening, which reduced the requirement for imports in the area. While suppliers to Europe had to lower their prices and turn outside of Europe for demand, prices on the worldwide market were under pressure. Global Natural Gas prices have fallen due to low demand and high enterprise stocks. European benchmark Natural Gas prices are progressively decreasing in recent weeks as the region has had milder weather than usual, helping to curb demand.

The increasing availability of goods, especially fertilizers supply, led to a modest alleviation of Germany's price pressures. Although the reduction in downstream demand is alarming, there have not been as many problems with the European supply chain, which has helped to halt the price decline in the German market. As a result, downstream Nitrobenzene and Ammonium Nitrate manufacturers have decreased their essential demand for Nitric Acid.

As per ChemAnalyst, "Prices for Nitric Acid are expected to remain low in the upcoming months because it is doubtful that demand will increase soon on either the domestic or international markets. The market purchasing sentiments may also stay low due to the decreased customer demand. Moreover, the Nitric Acid sector may experience a further decline due to the global market collapse."