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.
