During the first half of October 2023, the global Nitric Acid market saw a modest price increase. This price upturn results from several factors, including the rising costs of feedstock and upstream materials, robust demand from downstream industries, and disruptions in the supply chain.

Nitric Acid prices in the North American region experienced a notable increase during the first half of October 2023. This increase can be linked to factors such as higher costs for key materials like Ammonia and Natural Gas and strong demand from the downstream industries. The heightened demand for the downstream derivative Aniline can be attributed to the strong performance of the Rubber industries. This increased demand further pushed up the price of Nitric Acid in the market. Further, this month, demand for Nitric Acid from domestic and international fertilizer markets remained strong. Local fertilizer consumers were proactively stockpiling supplies in preparation for the upcoming Barley planting season in October 2023, leading to consistent and strong demand from various regions across the nation.

Similarly, the German Nitric Acid market witnessed an upswing during the first half of October 2023. This escalation in pricing can be attributed to a substantial surge in the costs of the primary feedstock, Ammonia, and the upstream component, Natural Gas. This pronounced cost increase has considerably impacted various downstream derivative industries, notably the Nitric Acid market. As a result, manufacturers operating within the German market have responded by adjusting their pricing to reflect the aggressive surge in expenses related to raw materials. The demand for Nitric Acid within the downstream fertilizer market exhibited a steady, albeit moderate, growth during this month. However, heightened demand for downstream derivative Aniline can be attributed to the robust performance of the Rubber and Automotive industries. This heightened demand has exerted an additional upward pressure on the price of Nitric Acid in the market. Additionally, a major Chemical Producer in Germany has reduced production rates in the country. This has led to a shortage of material within the German market. The confluence of these factors has prompted a widened demand-supply gap supporting the current price hike.

According to ChemAnalyst, it is expected that Nitric Acid prices will increase on a global scale in the upcoming months. This price hike can be attributed to rising costs of feedstock Ammonia and upstream Natural Gas. Further, there is an anticipated strong demand from the downstream fertilizer industry in the coming months, which is expected to contribute to the price increase.