For the Quarter Ending December 2024
North America
The North American Nitric Acid market experienced fluctuating price trends throughout Q4 2024, ultimately ending the quarter with a modest 1% increase compared to Q3 2024. Early in the quarter, the market saw price stability, even amid short supply. However, demand was dampened by Hurricane Helene’s impact, which destroyed significant portions of Georgia's peanut, cotton crops, reducing fertilizer demand, limiting nitric acid consumption.
As the quarter progressed, prices declined further due to higher inventories and cautious sentiment in the fertilizer sector. Rising feedstock costs, including ammonia and natural gas, provided little support, as adverse weather disrupted agricultural cycles. Persistent rains and drought in key regions delayed fertilizer applications, maintaining weak demand.
By the quarter’s end, the market showed signs of recovery driven by higher production costs due to elevated feedstock prices, along with supply constraints from logistical disruptions. Pre-buying activity from the agricultural sector, driven by expectations of a robust spring planting season with 92 to 94 million acres of corn, boosted demand. This late-quarter recovery highlighted improved sentiment, culminating in a slight price increase by quarter-end. According to ChemAnalyst, the quarter-ending price of Nitric Acid 98% FOB New York was USD 288/MT, reflecting the prevailing market conditions.
Europe
The European Nitric Acid market followed an upward trajectory in Q4 2024 increasing by 4% compared to last quarter, fuelled by constrained supplies, escalating production costs, and short-term demand surges. Early in the quarter, prices spiked due to sharply higher feedstock ammonia and natural gas costs, driven by geopolitical tensions and colder weather patterns. Production cuts, including Yara’s ammonia plant closure in Belgium, alongside logistical disruptions at Hamburg’s Container Terminal Altenwerder, exacerbated the supply squeeze. Despite weak demand from Germany's fertilizer sector due to low grain prices, reduced farm incomes, and delayed agricultural cycles, limited inventories kept the market firm. Mid-quarter, prices saw a slight dip as improved supply met subdued demand, particularly from Germany, where wholesalers faced slow sales amid full warehouses and logistical challenges. By quarter’s end, prices climbed again, supported by elevated production costs and a surge in agricultural procurement as farmers secured fertilizers ahead of spring planting. While demand remained cautious due to financial pressures, pre-emptive stocking bolstered the market, setting a positive tone for early 2025 amidst ongoing cost and logistical challenges. As per ChemAnalyst, the later quarter ending price of Nitric Acid FOB Hamburg stood at USD 422/MT.
APAC
The Asian Nitric Acid market experienced a significant price decline in Q4 2024, decreasing by 8% compared to Q3. Early in the quarter, demand remained subdued due to the seasonal slowdown and reduced fertilizer production, leading to muted domestic transactions and a weak trading environment. Exports to the European market also fell due to low demand, adverse weather, and reduced purchasing power. Mid-quarter, a slight uptick in prices was observed due to increased domestic demand during the winter storage season. This provided some temporary relief to manufacturers. However, this increase was short-lived, as subdued demand and ample supply persisted with stable production levels fulfilling domestic needs despite ongoing maintenance at smaller facilities. Particularly in China, elevated factory and port inventories reflected the challenges in clearing stockpiles amidst low export orders and soft local demand. While supply reductions following maintenance shutdowns offered marginal support to market sentiment, they were unable to counterbalance the prevailing downward pressure. By the end of the quarter, the price for Nitric Acid 98% FOB Dalian stood at USD 261/MT, reflecting the ongoing negative sentiment in the pricing landscape, and underscoring the challenges faced by the Nitric Acid market in the APAC region.
For the Quarter Ending September 2024
North America
The North American Nitric Acid market experienced fluctuating price trends throughout Q3 2024, primarily remaining on the lower end. Early in the quarter, prices saw a notable decline, driven mainly by weak demand from the key downstream fertilizer sector. Traders attempted to stimulate prices in anticipation of increased demand ahead of the planting season, but these efforts largely fell short.
Adverse weather conditions, including hurricanes, heavy rainfall, and storms, significantly impacted agricultural cycles and further restrained demand for nitric acid. While there was a modest price recovery in August 2024, it was primarily linked to supply shortages rather than a genuine resurgence in demand. The hurricanes caused considerable production disruptions, limiting the availability of nitric acid in the market, and exerting some upward pressure on prices.
However, by the latter part of the quarter, prices began to stabilize as the market adjusted to production setbacks. Despite this stabilization, demand remained relatively weak due to ongoing weather-related challenges. According to ChemAnalyst, the quarter-ending price of Nitric Acid 98% FOB New York was USD 288 per metric ton, reflecting the prevailing market conditions.
APAC
In Q3 2024, the Nitric Acid market in the APAC region experienced a steady decline in prices, driven by several key factors. The market faced a significant downturn, with prices falling sharply due to weak demand across various industries. Contributing factors included reduced procurement activities, lacklustre performance in end-user sectors, and adverse weather conditions. China, in particular, witnessed the most significant price fluctuations, mirroring broader regional trends. On the supply side, an increase in domestically produced Nitric Acid in China contributed to the downward pressure on prices. This heightened supply situation is primarily attributed to persistent global port congestion. Overall, the market recorded a 2% decline compared to the previous quarter. The latter half of the quarter showed a slight improvement, with a -1% change from the first half. By the end of the quarter, the price for Nitric Acid 98% FOB Dalian stood at USD 297/MT, reflecting the ongoing negative sentiment in the pricing landscape, and underscoring the challenges faced by the Nitric Acid market in the APAC region.
Europe
During Q3, the European Nitric acid market experienced a significant surge, particularly in Russia, the Netherlands, and the United Kingdom. This increase in prices was mainly attributed to a shortage of raw materials in the European market. The shortage stemmed from Ukraine’s incursion into Russia’s Kursk region, where the critical Sudzha gas transit station is located. Disruption at this key transit point created a ripple effect, impacting European gas supplies and further intensifying the regional shortage of upstream Natural Gas and feedstock Ammonia. To compound these challenges, a major Nitric Acid-producing unit, BASF's Ludwigshafen plant, declared force majeure due to an explosion at the facility. This disruption has further tightened the supply chain. The severe scarcity of this essential raw material directly affected nitric acid production, resulting in reduced output levels, and contributing to the rise in nitric acid prices. Demand for nitric acid remained moderate, driven by domestic requirements and orders from European importers. However, this demand was largely concentrated among smaller buyers within the region, reflecting a cautious market outlook. Additionally, the market faced further challenges due to fluctuating weather conditions, which impacted demand from the major downstream fertilizer sector. These unpredictable weather patterns made it difficult for farmers to forecast their fertilizer needs, creating a more volatile demand environment. As per ChemAnalyst, the later quarter ending price of Nitric Acid FOB Hamburg stood at USD 412/MT.
For the Quarter Ending June 2024
North America
During the second quarter of 2024, the North American Nitric Acid market experienced a notable decrease in prices, influenced by several key factors. Primarily, a decline in demand from the domestic fertilizer sector was a major driver of the price reduction. Unfavorable weather conditions, including extreme heat waves and disruptions caused by geomagnetic storms, resulted in a subdued planting season, leading to decreased demand for fertilizers, including Nitric Acid.
Additionally, international demand, particularly from European countries such as Norway and Spain, remained weak due to adverse weather events, including windstorms and floods, which further suppressed the need for Nitric Acid. Another contributing factor to the price decline was a slight reduction in the cost of essential feedstock, ammonia. The lower production costs for Nitric Acid, resulting from this reduction, exerted downward pressure on prices.
Furthermore, the market experienced an ample supply of Nitric Acid, which contributed to the overall price decrease. By the end of the quarter, the price for Nitric Acid in the USA was recorded at USD 270 per metric ton for Nitric Acid 98% delivered to Texas, reflecting the cumulative impact of these factors on the market.
APAC
The Nitric Acid market in the Asian region displayed mixed trends throughout the second quarter of 2024, with notable fluctuations observed in China. Prices declined during the first and third months of the quarter but increased in May. The price declines were primarily attributed to an oversupply of Nitric Acid in the Chinese market. This oversupply resulted from the resumption of operations at major production facilities, such as Anhui Haoyuan and Fujian Wanhua, and a reduction in demand for Nitric Acid derivatives, including Glyoxylic Acid. In contrast, prices surged by 6.3% in May 2024. This increase was driven by active stockpiling activities as consumers prepared for the upcoming Rice and Cotton planting seasons, capitalizing on favorable planting conditions within the country. Despite this domestic upturn, international demand remained moderate. In particular, the European market continued to face challenges due to persistently wet and waterlogged fields, which hindered crop cultivation efforts. Additionally, demand for Nitric Acid's other essential downstream derivative, Adipic, remained strong, supported by robust performance in the downstream sector. Textile, electrical, and modification enterprises have been adhering to routine stocking and consumption practices, with most procurement operations focused on production. Market insights indicated substantial growth in production and sales volumes of automobiles during the first quarter, with expectations for further expansion in the near future.
Europe
The European Nitric Acid market exhibited mixed trends throughout the second quarter of 2024, with prices fluctuating during the period. Prices decreased in the initial and final months of the quarter but rose in May. The initial price decline was primarily driven by reduced demand for fertilizers, including Nitric Acid, due to inconsistent and unfavourable weather conditions across the region. The European Union was particularly affected by excessive rainfall in countries such as Austria, France, Italy, Germany, and the Netherlands. These adverse weather patterns negatively impacted crop growth and disrupted field operations, introducing uncertainties into agricultural activities and significantly influencing Nitric Acid demand. As a result, farmers and agricultural stakeholders faced challenges in managing crops, which diminished the immediate need for Nitric Acid as a fertilizer. However, in May, prices surged by 1.2% due to a shortage of Nitric Acid in the market. Torrential rains and subsequent flooding in southern Europe necessitated evacuations and caused widespread infrastructure damage, especially along the crucial industrial shipping route of the River Rhine. This disruption contributed to the reduced availability of Nitric Acid, driving prices higher. Additionally, demand for Nitric Acid's essential downstream derivative, Adipic Acid, remained strong, supported by robust performance in the downstream sector. Industries such as textiles, electronics, and modification enterprises maintained their routine stocking and consumption practices, with most procurement operations focused on production needs. This steady demand in the downstream sector further supported the rise in Nitric Acid prices during the month.
For the Quarter Ending March 2024
North America
The Nitric Acid market in the North America region experienced a downward trend during the first quarter of 2024. This decline in prices can be attributed to several factors. One significant factor was the decreasing price of essential feedstock materials such as Ammonia and Natural Gas, which led to a reduction in production rates and downward cost pressure on Nitric Acid prices.
Additionally, the demand for Nitric Acid from the downstream fertilizer sector remained subdued, contributing to the overall decrease in prices. This trend was further exacerbated by the milder winter weather conditions, which resulted in reduced production rates, consequently leading to a surplus of Nitric Acid within the market. Despite the ongoing corn and soybean planting seasons in Brazil, demand from this significant importing nation remained subdued due to the traditional festivities associated with Carnival, resulting in a temporary deceleration of other activities like agricultural activities.
Conversely, a modest increase in demand was noted from the importing Asian market however it did not have any significant effect on Nitric Acid price. In addition to it reduced demand of downstream derivatives Aniline and Adipic Acid amidst fluctuating performance of automotive and textile market also exerted downward cost pressure on Nitric Acid price. As of the final month of the quarter, the price for Nitric Acid FOB New York in the USA stood at USD 297 per metric ton.
APAC
In the first quarter of 2024, the pricing dynamics of Nitric Acid in the Asia-Pacific (APAC) region portrayed a diverse scenario, with South Korea emerging as the most significantly impacted market. Throughout the quarter, South Korea witnessed a notable decrease in prices, influenced by a combination of factors. During this period, the demand for Nitric Acid from prominent end-user sectors such as fertilizer, textile, cosmetics, and automotive exhibited fluctuating patterns, largely remaining subdued. In February and March 2024, domestic demand in China was subdued due to Lunar New Year celebrations, mirroring similar trends in South Korea. Despite a moderate level of demand within the Korean market, particularly from the fertilizer sector during the millet planting season, essential downstream derivatives like Adipic Acid and Aniline faced constraints from the automotive and textile industries. The weakened performance of the automotive sector significantly contributed to the decline in Nitric Acid demand within South Korea. Preliminary data from South Korea's main automakers revealed a 15% decline in domestic sales in March 2024 compared to the previous year, underscoring the subdued demand for Nitric Acid. As of the final month of the quarter, the price for Nitric Acid in the South Korea stood at USD 305 per metric ton.
Europe
In Q1 2024, the European Nitric Acid market experienced a mixed pricing environment. The overall trend for Nitric Acid prices in the region was influenced by various factors. During the initial and final month of the quatre, there was a bearish sentiment due to declining prices of essential feedstock materials such as Ammonia and Natural Gas. This led to reduced production rates and downward cost pressure on Nitric Acid prices. Additionally, poor demand from the downstream fertilizer sector and adverse weather conditions in the UK, France, Germany, and Italy further constrained demand and posed a threat to Nitric Acid demand in 2024 fertilizers. However, there were also bullish sentiments in the market during February. Increased material prices in exporting European countries, driven by heightened shipping rates and ongoing Red Sea ship attacks, resulted in higher Nitric Acid costs. Traders raised prices to protect their profit margins amid these challenges. Furthermore, demand for the downstream derivative Glyoxylic Acid from the cosmetics and haircare industry was modest, indicating some positive market dynamics. Italy experienced the maximum price changes within the region.
