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 Ammonium Sulphate 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.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Nitric Acid market encountered a combination of challenges and opportunities. Notably, prices saw an increase in the initial and final months of the quarter, with margins of 5% and 2.6%, respectively.
However, there was a decline in November due to constrained demand from the domestic fertilizer market. A key factor contributing to the rise in Nitric Acid prices was the shortage of crucial feedstock materials, particularly Ammonia and Natural Gas, stemming from supply chain issues faced by a major Ammonia-exporting country. This scarcity of feedstock materials resulted in an escalation of Nitric Acid production costs, exerting upward pressure on prices. Additionally, robust demand from both domestic and international fertilizer markets, notably from Brazil, played a role in the observed price hike.
The North American market, especially the USA, faced trade challenges during this period. Persistent bottlenecks in Panama Canal have led to long ques and delayed shipments of commodities including Nitric Acid from the USA market. Simultaneously, incidents such as attacks on ships in the Red Sea led to higher ocean freight rates, raising concerns about inflation and delayed goods. Carriers, aiming to avoid potential disruptions by Iran-backed Houthi Rebels in Yemen, redirected trade away from the crucial Middle East route, intensifying global trade challenges and elevating transportation costs. In response to these challenges and to safeguard profit margins, traders increased prices for various commodities, including Nitric Acid.
APAC
During the concluding quarter of December 2023, the Nitric Acid market in the Asia Pacific region displayed mixed sentiments, particularly impacting the Chinese market. The initial two months witnessed a decline in prices within China after the country ceased additional CIQ export licenses, adopting a stringent export stance. Containers, previously cleared for export, were removed from vessels carrying fertilizers, including Nitric Acid, resulting in surplus material availability in the Chinese market. Demand for Nitric Acid during this period from key end-user sectors such as fertilizers, cosmetics, and textiles remained subdued. However, as December approached, prices began to rise in the Asian region due to firm demand from western regions in anticipation of the festive season. Concurrently, trade uncertainties in major shipping routes, coupled with attacks on ships in the Red Sea, led to higher ocean freight rates, prompting concerns of inflation and delayed goods. Carriers, seeking to avoid potential strikes by Iran-backed Houthi Rebels in Yemen, redirected trade from the crucial Middle East route, exacerbating global trade challenges and increasing transportation costs. To protect their profit margins, traders responded by increasing prices of various commodities, including Nitric Acid.
Europe
In the fourth quarter of 2023, the European Nitric Acid market exhibited a bullish trend characterized by several influential factors impacting prices. Notably, a shortage of Nitric Acid was observed in multiple countries, including Germany, Italy, and the UK. This shortage stemmed from a temporary cessation of Ammonia production by Yara, resulting in a scarcity of Ammonia and its derivatives, including Nitric Acid. The shortage was particularly pronounced in Germany, leading to a surge in Nitric Acid prices, exacerbated by the persistently low supply due to the Ammonia production halt. Further, the rise in the price of essential feedstock Ammonia contributed to the overall increase in Nitric Acid prices. Global trade uncertainties also played a significant role in driving up Nitric Acid prices. Incidents such as attacks on ships in the Red Sea resulted in higher ocean freight rates, raising concerns about inflation and delayed goods. Carriers, aiming to avoid potential disruptions by Iran-backed Houthi militants in Yemen, redirected trade away from the crucial Middle East route, intensifying global trade challenges and elevating transportation costs. In response to these challenges and to safeguard profit margins, traders responded by raising prices for various commodities, including Nitric Acid.
For the Quarter Ending September 2023
North America
Nitric Acid market showed marginal fluctuation of 2.6% for the third quarter ending September 2023. Nitric Acid prices declined for the first two months of the third quarter. However, the price increased during September 2023. This decline can be attributed to diminished demand from the downstream fertilizer industry, exacerbated by reductions in pivotal feedstocks - Ammonia and Nitric Oxide prices. However, insights provided by US management shed light on the low inventory levels of Nitrogenous products at the beginning of the month. This scarcity was a result of restricted imports and an escalated export volume to neighboring North American countries, notably Canada. Additionally, the country grapples with a severe grasshopper infestation in its fields, leading to crop damage and subsequently impacting fertilizer procurement orders. Further, reduced demand for downstream derivatives Aniline and Adipic acid exerted downward pressure on Nitric Acid prices. However, the price increased in September 2023, influenced by a combination of factors, including the higher cost of a crucial feedstock, Ammonia, and strong demand from both domestic and international markets. The heightened demand for the downstream derivative Aniline can be attributed to the strong performance of the Rubber and Automotive 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.
APAC
Asian Nitric Acid market prevailed mixed market trends for the third quarter ending in September 2023. Prices of Chinese Nitric Acid declined in the month of July 2023 in the wake of weak purchasing activities from the international and domestic fertilizer market. However, the price of upstream raw coal and feedstock liquid ammonia market was increasing marginally. Weak demand for Nitric Acid and its derivative materials had a negative impact on the Nitric Acid market. Conversely, the prices saw a significant increase during August 2023 and continued to rise through September. The elevated cost of essential feedstock Ammonia and upstream Thermal Coal prompted higher production rates, consequently leading to an uptick in Nitric Acid prices. There was a shortage of spot availability of Nitric Acid in the Chinese market, as producers are focused on fulfilling supply contracts. Further, during this period, the supply of the material in the Chinese market was lower than expected in some parts of the country as production activity of some plants in the Shandong region declined. The confluence of these factors prompted a widened gap between demand and supply, supporting the current price hike. Furthermore, as per data released by the National Bureau of Labor and Statistics, the new order index was almost stable after increasing marginally from 50.2 in August 2023 to 50.5 in September 2023, along with a sharp increase in the Production Price Index of the country, thus indicating the consumption of goods.
Europe
The European Nitric Acid market exhibited mixed sentiments throughout the third quarter ending September 2023. The prices declined in July by 3.9%; however, they increased significantly in August 2023 and continue to rise throughout September 2023. The key factors attributing to the decline in price during July were lackluster demand from the downstream fertilizer industry and fluctuating price of feedstock Ammonia. Furthermore, energy prices have experienced their lowest point during this month in the European Region, further influencing the prevailing price trend. Conversely, the German Nitric Acid market witnessed a notable upswing in prices during August and September. 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 increase in costs has had a considerable impact on 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.
For the Quarter Ending June 2023
North America
Considering the current prevailing market dynamics, the prices of Nitric Acid have shown a downward trend throughout the second quarter of 2023. The prices have declined by 8.9% from April to June in the USA on the back of declining prices of feedstock Ammonia and Natural Gas in the country and diminished demand from the nitrogenous fertilizer industry. Further, fewer exports to other importing American countries like Canada and Mexico due to low water levels in the Mississippi River have led to surplus material availability in the USA market. Ample product availability coupled with low procurement orders from domestic and international markets has forced the market participants to lower the price of Nitric Acid. This was the fourth consecutive in that index. However, as the Federal Reserve of Economic Data indicates, the Consumer Price Index of the USA has shown a marginal rise from 302.91 in April 2023 to 303.29 in May 2023. In the coming months, future market sentiments suggest a potential shift towards an incline in prices backed by an increase in Natural Gas and Ammonia prices.
APAC
Similarly to the global market trend, prices of Nitric Acid have showcased a downward trajectory throughout the second quarter ending in June 2023. The prices have shown a dip of 18.2% from April 2023 to June 2023 in China. The Key driving factors behind the decline in prices are decreasing prices of feedstock Ammonia and diminished demand from domestic and international markets. Additionally, it was recorded that exports from China dropped down by 0.4% by the end of May, almost after a year leading to stockpiled inventories in the country. Enough availability of the material and low procurement orders from the end–user market paved the way for the narrowed demand-supply gap, consequently impacting the price. Additionally, as indicated by the National Bureau of Statistics China, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month, and the industrial growth rate declined from 5.6 in April 2023 to 3.5 in May 2023. Further, owing to declined price trend in exporting country China, prices have declined by a margin of 8.8% in Thailand.
Europe
The prices of Nitric acid declined throughout the second quarter ending June 2023. The prices showed a dip of around 8.8% in the UK. Natural Gas and Ammonia, which are important inputs in the production of Nitric Acid, were both declining, which may be the cause of the decline in Nitric Acid prices. Further low procurement orders for downstream derivatives Ammonium Nitrate and Glyoxylic Acid also supported the prevailing price trend. Heavy rainfall and bad climate conditions in the region led to delayed farming season and low demand from the Nitrogenous fertilizer industry and affected the manufacturing facilities. Additionally, the country's consumer price Index has increased from 130.4 in April to 131.3 in May. Weak economic conditions and growing inflation in the region also impacted the price. However, the Central Bank of Europe has increased interest rates to control inflation further. Further, UK prices declined in Italy and Turkey due to the declining price trend in exporting countries. However, prices are expected to rise in the coming months, backed by increased feedstock prices and reviving economic conditions.
For the Quarter Ending March 2023
North America
Nitric Acid prices fell in the US market during Q1 2023 due to weak demand from downstream sectors. The weak demand and high operational costs in the downstream sectors have impacted Nitric Acid costing. Additionally, in the first quarter of 2023, the demand for cleaning chemicals and intermediates remained weak. Nitric Acid supplies in the regional market remained low and rare in the local market. In addition, upstream readings first decreased before remaining stable for the remainder of the quarter. Furthermore, despite efforts to manage the supply-demand balance by cutting production rates, trade-in fertilizers based on Ammonia have continued to decline. There was not much demand for more spot cargoes in the US because of the high stock levels.
Asia
During Q1 2023, Nitric Acid prices had mixed sentiments as initially, the prices rose and later fell in South Korea, China, and India. Domestic feedstock Nitrogen output remained favorable because of ample natural gas supply and a sluggish nitrogen market operating speed in India. The number of inventories of Nitric Acid remained steady as well. The continued rise in energy costs positively impacted the cost of operations. The downstream demand for Nitric Acid remained mixed as the downstream Aniline prices dropped while Ammonium Nitrate increased. However, the declining downstream costs supported the stability in the price of Nitric Acid. Nitric Acid 98% FOB Dalian (China) prices were assessed at USD 406/MT during the end of the quarter.
Europe
Nitric Acid costs have experienced yet another significant decrease during Q1 2023. Global supply delays resulting from continued shipping issues have been vital in setting the material's final pricing. Meanwhile, the fertilizer and Ammonium Nitrate industries have reduced the asking demand for Nitric Acid. Nitric Acid costs on a FOB basis were estimated at USD 375 per MT in March. Given the ongoing turbulence in the global fertilizer and transportation industries, prices have decreased by more than 5% since the beginning of the first quarter. During Q1 2023, the increased accessibility of commodities, particularly fertilizer supplies, resulted in a small easing of pricing pressures in Germany. Reduced downstream demand is undoubtedly concerning, but fewer issues with the European supply chain have helped to hold back the price decline in the local German market.
For the Quarter Ending December 2022
North America
Nitric Acid prices remained low in the US market as the domestic demand for the product was low in the fourth quarter. The stagnant buying sentiments amongst domestic buyers throughout November 2022 and persisting lower output in the downstream industry with a rising recession in the region affected the pricing movement of Nitric Acid. The supply dynamics have gotten worse due to port congestion and logistics issues on the US Gulf and East Coast. The demand fundamentals have been constrained by the weak demand from the downstream agricultural industries, which has also affected trading sentiments on the regional market. Nitric acid 98% FOB New York (USA) was averaged at USD 393/MT.
APAC
Nitric Acid Prices have fallen in Asia as a result of market pessimism. A regular supply of the product in the market resulted in a decrease in the price of Nitric Acid. The cost of raw materials was reasonably stable, which aided the Nitric Acid industry. Nitric Acid price remained flat at USD 403/MT on a FOB Dalian basis due to muted demand in the domestic market with very few offtakes. Therefore, the same price lasts throughout November month. Due to flat downstream offers, muted market activity, and the destocking of stockpiled inventories, nitric acid prices remained bearish in the week ending December 23, 2022. Meanwhile, the stability of overseas offers in the Chinese market has influenced commodity pricing dynamics in mid-December 2022.
Europe
Nitric Acid prices in European countries fell along with the prices of most nitrates as there was low demand in the region coupled with bearish market sentiments. As favorable weather in the European region stabilized manufacturing costs by keeping the energy prices low throughout this timeframe, led Nitric Acid production costs continued to drop. During the mid-quarter, natural gas costs decreased as well, which led to a decrease in the price of Nitric Acid. After the peak period for agricultural demand had gone, downstream demand was low. The downstream derivatives industries' demand has remained poor to stable over the quarter. Nitric acid 98% FOB Hamburg was priced at USD 457/MT due to sufficient inventory levels being available to meet domestic needs.
For the Quarter Ending September 2022
North America
Owing to sluggish downstream demand at the end of the spring agricultural season, Nitric Acid prices decreased in the domestic U.S. market during the third quarter of 2022, while Nitric Acid's direct prices remained unchanged. However, the upstream natural gas fluctuation helped the feedstock Nitrogen price experience small volatility. Sluggish and slow inquiries have caused lower price sentiments. Nitric Acid FOB New York prices were estimated at USD 395/MT. Additionally, the manufacturers reduced the product's worth due to the low operating rate and decrease in crude values. Demand from the agricultural sector remained relatively stagnant, although the Aniline market picked pace towards the quarter end.
APAC
Nitric acid prices in APAC have been volatile due to significant changes in market dynamics. The rise in natural gas costs has hampered the Chinese market for Nitrogen and Ammonia, which is utilized as a feedstock for the nation's production of Nitric Acid, and has further slowed production. Logistical problems and physical limitations in the supply chain from the mine to the manufacturing facilities have increased. Thoughts began to shift as China was hit by a dreadful heatwave that negatively impacted its economy. China's market also remained closed for 8-10 days after the power cuts, followed by the typhoon in the last quarter. Therefore, market activities kept on getting hampered. Nitric Acid FOB-Dalian was assessed at USD 396/MT in the previous month of the third quarter.
Europe
Nitric acid prices showed mixed sentiments in the Q3 of 2022. During the first month of the quarter, the prices declined, while in the latter half, offers soared. Initially, the global scarcity and increasing demand in the worldwide market hampered the Nitric Acid market sentiments. On the other hand, the downstream industries' weak demand fundamentals in July, including fertilizers and Ammonium Nitrate manufacturing. The increased demand for Nitric Acid in the global market brought the price rise in august due to the import ban. Furthermore, supply constraints persisted in the European markets, which made it challenging to price Nitric Acid in the third quarter.
For the Quarter Ending June 2022
America
During Q2 2022, Nitric acid Prices rose in the US market owing to strong demand from the downstream sectors. The rise in semiconductors demand and high operating rates in the automotive industries have influenced Nitric Acid costing. In addition, the demand for fertilizers was strong in the second quarter of 2022. The demand for nitric acid in the domestic market continued to be low and scarce on the supply front. Additionally, upstream values have been rising steadily for the entire month. Further, a dealer disclosed that nitric acid producers have run into trouble in the local US market. These businesses are being compelled to raise their selling prices due to rising natural gas prices, which are the source of this ammonia.
Asia
During Q2 2022, Nitric Acid Manufacturers dealt with many supply-chain issues, including rising energy, raw material, packaging, and transportation costs. Traders remained concerned about the Nitric Acid price hike, as they were already grappling with inflationary tendencies on numerous fronts. The price of raw materials continued to have a minor influence. Because of rising coal and Ammonia prices in China, the primary feedstock for Nitric Acid production, factories were compelled to curtail output, contributing to price increases. Nitric Acid prices have risen this quarter, causing downstream fertilizer prices to grow as well. To ensure domestic availability, China has stopped fertilizer exports until at least June 2022, adding to supply problems. Aside from input costs, the outlook's risks are determined by whether China's Ammonium Nitrate exports restart after June, a downstream derivative of Nitric Acid.
Europe
Nitric Acid costs have experienced yet another significant increase during Q2 2022. Global supply delays resulting from continued shipping issues have been vital in setting the material's final pricing. Meanwhile, the fertilizer and Ammonium Nitrate industries have increased demand for Nitric Acid. Nitric Acid costs on a FOB basis were estimated at USD 380 per MT in May. Given the ongoing turbulence in the global fertilizer and transportation industries, prices have increased by more than 5% since the beginning of the second quarter. During Q2 2022, supply chains have worsened as the ongoing war in Ukraine has hampered trading in Europe.
For the Quarter Ending March 2022
North America
In Q1 2022, Nitric Acid prices in the North American region have kept the pricing trajectory upwards, particularly in the US. The prices of Nitric Acid in the United States have declined roughly about 8% in February. This steep rise was due to the soaring upstream Natural Gas and Coal prices and disrupted commodity supply chains due to western sanctions against Russia, which is the major exporter of feedstock Ammonia. The resultant sky-high fertilizer prices led to low consumption of Nitric Acid by farmers, which is the main negative factor in the regional market, along with a reduction in planting area across the US. During the winter slump, manufacturers felt little pressure to change their offers. So, the robust demand settled the price discussions at USD 380/MT for Nitric acid 98% FOB New York during March 2022.
Asia Pacific
Nitric Acid prices in the Asian market have been steadily rising throughout the first quarter of 2022 because of the scarcity of supplies in the region. Manufacturers were heard grappling with various supply-chain difficulties and increasing energy, raw material, packaging, and transportation costs. At the same time, most Chinese farmers and agrochemical experts reported a loss during the first quarter of 2022. Manufacturing activity increased in the export powerhouses of South Korea, despite supply chain disruptions and raw material shortages. The Nitric Acid price hike is undoubted because of the inflationary trends. The average price of domestic concentrated Nitric Acid, 98% Ex-Vadodara, during the month of March was assessed at USD617/MT.
Europe
In Germany, the prices of Nitric acid soared by 2.5% in March, backed by strong demand from downstream. The augmented demand for Nitric Acid in the domestic market of Germany was caused due to the increased need for fertilizers, worldwide. Furthermore, the demand for another downstream product, Polyurethane, was also high, resulting in increased Nitric Acid prices. In addition, the rising crude oil prices amidst Russia-Ukraine war tensions enhanced the upstream cost of Nitric acid, eventually contributing to the price hike. Altogether, the robust demand for fertilizers and Polyurethane and skyrocketing energy costs propelled the Nitric Acid prices in Germany. Conclusively, the prices for Nitric Acid 98% were evaluated at USD 420/MT FOB Hamburg during the first quarter of 2022.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the prices of Nitric Acid escalated due to several factors, which included lingering hurricanes and other supply chain disruptions in the US gulf. Because of the high prices, some farmers were heard delaying purchases, risking a scramble for supplies during the most crucial time for farming. The downstream ammonium nitrate was found to be short on inventory levels due to the shortage of Nitric acid.
Asia
In Asia, the prices of Nitric Acid showcased mix sentiments throughout the fourth quarter of 2021. In China, the cost of Nitric Acid plunged in the time frame of October to November after registering record high estimates in the last quarter. Prices witnessed a fall backed by the decline in the demand from Agrochemical sector. Due to “the Dual Control policy” many agrochemicals and other chemical manufacturers were compelled to curtail their production by 50% that directly influenced the demand and pricing dynamics of the product. However, in December, prices of Nitric Acid attained marginal gains and listed around USD 480 per MT Ex Work Qingdao , backed by the buoyant demand from fertilizer segment and increasing cost of raw materials.
Europe
In Europe, the pricing trend of Nitric Acid experienced an upward trajectory backed by the spike in raw material such as ammonia and firm demand from downstream manufacturers including Agrochemicals and fertilizers. Moreover, the soaring energy prices in effect of natural gas crisis rocketed the production cost across the European region that also contributed to the pricing trend of Nitric Acid. Moreover, inflated freight charges and shortages of shipping containers further sent ripples to the values of Nitric Acid in this quarter.
For the Quarter Ending September 2021
North America
The overall market of Nitric acid showcased an upward trajectory in the 3rd quarter of 2021 across the Asia Pacific region. In the US market, demand for conc. Nitric Acid had been steady in driven by increased demand from the agrochemicals industry during the peak cropping season. Prices of Nitric Acid remained bullish during the 1st half of Q3 while a slight uptrend was observed in the 2nd half owing to a lag on the supply side. Increasing demand from the mining explosives industry is likely to keep the prices afloat going into Q4.
Asia
The Asian market witnessed a significant rise in the prices of Nitric Acid during the third quarter of 2021. The demand for Nitric Acid remained strong in the Chinese domestic market from the agrochemicals sector, while ensuring firm supply to the international markets. Soaring feedstock prices and high freight costs translated into increased Nitric Acid prices across the region. In India, prices of Nitric Acid 68%- escalated from USD 340 to USD 423 per MT from July to September. Traders reported that strong inquiries from domestic buyers increased as most of them are left with considerably low inventories amidst the strong downstream demand. In addition, an abrupt global shortage of Ammonia and Nitric Acid provided room to several manufacturers to fetch better netbacks.
Europe
The market environment demonstrated a positive trend across the European region in Q3 2021, with increased pricing reflecting both strong demand and a tight supply situation. The recent surge in European natural gas prices has triggered significant production curtailments in the region and driven up global Nitric Acid prices. On 14 July 2021, the European Commission adopted a proposal for a Carbon Border Adjustment Mechanism (CBAM) in order to prevent carbon leakage and create incentives for raising climate ambition in non-EU states. The production of fertilizers, and thus nitric acid, is among the sectors affected by CBAM.
For the Quarter Ending June 2021
North America
The demand for Nitric Acid remained stable during this quarter across the North America region, backed by improved downstream activities across the region. The prices kept fluctuating throughout the quarter in USA. While offers increased effectively during the first half of the quarter due to soaring feedstock Ammonia prices, prices eased considerably in the later half with improvement in market supplies. A key North American producer reported stronger Nitric Acid sales in Q2 due to surge in industrial demand with the ramp up of a new Nitric Acid offtake agreement with the demand exceeding pre-pandemic levels.
Asia
Nitric acid market showcased firm sentiments during this quarter. In China, demand for Nitric Acid remained uplifted due to firm offtakes from the downstream agrochemicals sector, while ensuring firm supply to the international market. Moreover, prices gained momentum due to soaring feedstock prices in the domestic market and increased further for importing countries due to high freight cost. While in India, prices tumbled during the month of May due to pandemic mayhem in the country, which later improved by the end of the quarter. The price of Nitric Acid in India settled at INR 300/MT during the last week of June in India. South Korean market prospects turned positive after the chemical giant Hanwha announced investment of around USD 170 Million at its existing Nitric Acid manufacturing facility to increase the overall capacity by 400 KTPA, which is expected to be completed by 2023.
Europe
Demand for Nitric Acid in Europe remained modest during the quarter, backed by stable offtakes from the domestic agrochemicals sector. Soaring feedstock Ammonia prices also impacted the overall price trend of Nitric Acid across the region. Meanwhile, the demand from other sectors like TDI remained dull throughout the quarter and showcased some signs of recovery by the end of June. Demand from Aniline manufacturers also remained firm during the quarter. In addition, high freight cost also exacerbated the overall price of Nitric Acid of the region.
For the Quarter Ending March 2021
North America
Rare climate calamity disturbed the production activity of Nitric Acid across the region during Q1 2021. Amidst fair demand from the downstream ink manufacturers and fertiliser sector, supply remained limited throughout the quarter. Critical shortage of key raw materials like Ammonia due to multiple plant shutdowns supported the prices and hence the prices of Nitric Acid rose from USD 320 per MT (January 2021) to USD 335 per MT (March 2021). It is anticipated that the prices may stop accelerating in Q2 2021, as the US production line is coming back on track.
Asia
Strong demand from the downstream fertiliser sector amid critical shortage of feedstock chemicals drove the Asian Nitric acid market during Q1 2021. In the Indian market, due to extended turnaround of major feedstock Ammonia plant created a domestic supply shortage. In addition, Chinese lunar new year holidays also impacted the supply activity across the region. Post-holiday restocking propped up the prices of Nitric Acid in the Chinese and Indian markets. Prices ended up settling at USD 1648.46 per MT in India during March end. Although the prices also received a further push from continuously rising freight prices and shortage of shipping containers.
Europe
The European countries encountered a steep rise in prices of imported Nitrogen based fertilisers during this period. Nitric Acid demand from agriculture sector remained consistently strong due to the arrival of spring season. Although feeble supply, forced traders to look forward for imports, but that too came out as a premium option, as due to winter season transportation activities were also noted disturbed across the region.
For the Quarter Ending December 2020
North America
The fourth quarter performance of the North American market seemed to improve both in terms of demand and supply of Nitric Acid. Sales of Nitric Acid were down in Q4 2020 compared to Q4 2019 but showed a significant rise over the third quarter. This improvement in sales was mainly driven by the agriculture sector. A large volume of the product was consumed in the production of downstream polyurethane, a key raw material in foam manufacturing .CF industries, a leading fertilizer manufacturer in the region, invested USD 41.4 million into nitrogen-based fertilizer manufacturing plant with plans of boosting its Nitric Acid production capacity.
Asia
The Chinese Nitric Acid market was firm till mid-November after which it started tapering off with offers suppressed over the year-end market lull. The production of nitric acid in some areas remained halted, thereby tightening the supply in short term. India reported huge shortage of feedstock Ammonia which prompted increase in the prices Nitric Acid moving into December. Nitric Acid prices rose from USD 125 per tonne in Q2 to USD 285 per tonne in Q4. Meanwhile, the Indian govt. announced a huge investment of USD 5527.5 million over the agrochemical sector to improve the production capacity of fertilizers in the domestic market. Consumption from the downstream polyurethane manufacturers which reported steady growth in sales across Asia pacific region during Q4 2020. This growth was derived from the improved construction sector, which ultimately led to the rise in demand of Nitric Acid.
Europe
Lower automobile manufacturing meant a significant drop in the consumption of PU during the last quarter of 2020 due to spike in COVID-19 cases and fresh lockdowns imposed in some countries. This fall was said to have significantly impacted the demand of Nitric Acid. However, by mid-December, prices for most of the fertilizer products surged to fresh highs as the key raw materials (including nitic acid) started gaining momentum towards the end of Q4 due to recovering demand and production constraints prevailing due to the weather-related problems.
