Nitric Acid Price Trends and Forecast

Regional Price Overview

Get the latest insights on price movement and trends analysis of Nitric Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Nitric Acid Price Trends for the First Half of 2023

Asia

The price trendss for nitric acid seemed flat during the first quarter of 2023. Though the buyers actively hoarded products owing to the Lunar New Year holidays, no significant impact on the market dynamics was seen as the supply-demand remained somewhat balanced. However, even with the manufacturers operating at low levels, the market was still oversaturated with the product.

The gradual decline in the prices was the result of the rise in the level of inventories, volatile demand from the downstream industries, and a steep drop in the prices of aniline and ammonium nitrate, which are the major market drivers of nitric acid. The spot prices of nitric acid averaged around 281 USD/MT in June’23 in the Chinese domestic market.

Europe

The declining trends in the prices of nitric acid from the last quarter of 2022 was actively followed in the first half of 2023 in the European region. The prices declined gradually as the region faced challenges maintaining its supply chains amid falling natural gas prices. The reduced demand from the fertilizer and ammonium nitrate sectors further aided the downfall.

North America

The weak demand from downstream industries and the high cost of production in the North American region guided the price trendss for nitric acid. The prices also suffered from the high stock levels as, along with the end-user sector, the intermediate companies were also reluctant to purchase the commodity. With the disruptions in the supply-demand equilibrium, the nitric acid market followed a negative trajectory.

Analyst Insight

According to Procurement Resource, the price trendss for nitric acid will likely oscillate in the upcoming quarter as the demand from the downstream fertilizers and ammonium nitrate sector is expected to remain weak.

Nitric Acid Price Trends for the Second Half of 2022

Asia

The nitric acid market remained weak in the last two quarters of 2022 in the Asia-Pacific region. The prices slumped due to weak economic activities and a rise in natural gas prices. The price trends was also affected by the logistical challenges and disruption in the supply chain. In the fourth quarter, the demand from the domestic market drastically declined, reducing the offtakes, thereby aiding the downward trajectory of nitric acid prices.

Europe

In the first half of the third quarter, the prices of nitric acid declined as the fertilizers and ammonium nitrate industry showed less interest and hampered the demand for nitric acid. The prices surged in the latter half of the third quarter owing to high demand and constraints in the supply chain. This trends was, however, short-lived as the prices again fell in the fourth quarter, with low demands and weak market fundamentals hampering the nitric acid market.

North America

In North America, the price trendss for nitric acid suffered from the decreased number of inquiries and slow economic conditions of the region. The weak feedstock prices, coupled with uncertain crude oil costs, forced the manufacturers to decrease their production rates. However, no significant impact was seen in the market as the demands were drastically low. This same downward trends continued throughout the last quarter.

Analyst Insight

According to Procurement Resource, the price trendss for Nitric acid are estimated to remain volatile in the upcoming months as the global demand from the end-sector industries seems weak. Further, the uncertain energy production costs will likely negatively affect the nitric acid market.

For the Second Quarter of 2022

Asia

In the Chinese domestic market, the price trendss of nitric acid recorded a fluctuating pattern during the said quarter. Due to the constricted supply and heightened prices of primary feedstock ammonia, nitric acid prices rose constantly. The price of the chemical went from 2466 RMB/MT in May 2022 to 2950 RMB/MT in June 2022. Though towards the end of the said quarter, the prices of ammonia began to fall in the Chinese arena, HNO₃ prices remained firm owing to the strong demand for fertilizer ammonium nitrate in the market.

Europe

Owing to the surging prices of feedstock ammonia and supply delays as a result of shipping issues, the prices of nitric acid stood firm in the European market. Per ton price of HNO₃ was recorded at 380 USD FOB. Prices have risen by more than 5% since the start of this quarter due to the disturbance in the global fertilizer and transportation industries. Baltic ammonia prices averaged 919-988 USD/MT, while that of Black Sea ammonia averaged 938-960 USD/MT FOB. Also, solid downstream demands from the fertilizer industry helped sustain the higher price trendss of nitric acid in the domestic market.

North America

Amid the tightened supply and the surging costs of raw materials, the prices of nitric acid remained strong in the US domestic arena. With the harmonized market dynamics, the price trendss for nitric acid remained healthy, in line with the global outlook.

Analyst Insight

According to Procurement Resource, the prices of nitric acid would be volatile for the most part. The uncertainty lies in the end-user demand in the form of fertilizers, which is highly capricious owing to seasonal fluctuations. Moreover, the higher natural gas prices might abrade the production pace for nitric acid.

Hydrogen Nitrate Price Trends for the First Quarter of 2022

Asia

Nitric acid prices rose to 2316 RMB/MT on March 28 from 2216 RMB/MT on March 1, an increase of 4.15%. Ningxia Runxia Energy and Chemical Co., Ltd. generated 150000 concentrated acids and 98 concentrated nitric acids as of March 28th, according to the company's most recent annual report. Each tonne cost 2350 RMB at the manufacturing facility. Because the chemical is so difficult to ship, there was less upstream building. According to Anhui Jinhe Industrial Co., Ltd., the factory quotation for the chemical was 2400 RMB/ton. Xinghua Chemical Co., Ltd. in Shaanxi, China, has started producing concentrated hydrogen nitrate, with a price of 2200 RMB/MT.

For the Fourth Quarter of 2021

Asia

In Asia, nitric acid prices displayed a blend of opinions all through the final quarter of 2021. In China, the price of the chemical plunged in the time span of October to November subsequent to enrolling record high gauges in the last quarter. Nitric acid prices saw a fall supported by the decrease in the interest from the agrochemical sector. Because of the Dual Control strategy, numerous agrochemicals and other synthetic makers were constrained to abridge their creation by half that straightforwardly impacted the demand and price of the chemical. In any case, in December, the price achieved negligible gains and was recorded around 480 USD/MT Ex Work Qingdao.

Europe

The rising nitric acid prices in Europe were fueled by a surge in raw materials such as ammonia and strong demand from downstream businesses such as agrochemicals and fertilisers. Furthermore, rising energy prices as a result of the natural gas crisis drove up production costs across Europe, contributing to its pricing trends. Also, rising freight costs and a scarcity of shipping containers wreaked havoc on nitric acid prices in this quarter.

North America

Nitric acid prices increased in the fourth quarter of 2021 as a result of many causes, including lingering hurricanes and other supply chain problems in the US Gulf. Because of the high prices, several farmers have been reported postponing purchases, risking a supply shortage at the most critical time of the year for farming. Due to a nitric acid shortage, downstream ammonium nitrate inventory levels were discovered to be low.

HNO₃ Price Trends for First, Second and Third Quarters of 2021

Asia

Solid interest from the downstream compost area in the midst of a basic deficiency of feedstock chemicals drove the Asian the chemical’s acid market during Q1 2021. In the Indian market, because of the extended turnaround of a significant feedstock ammonia plant made a homegrown supply deficiency. Likewise, Chinese lunar new year celebrations additionally affected the supply action across the area. Post-occasion restocking set up the costs of HNO₃ in the Chinese and Indian business sectors. Costs wound up settling at 1648.46 USD/MT in India during March end.

In India, costs tumbled during May because of the pandemic anarchy in the country, which later improved before the end of June. South Korean market possibilities turned positive after Hanwha reported speculation of around USD 170 million at its current nitric acid assembling office to build the general limit by 400 KTPA, as most would consider to be finished by 2023.

The Chinese market stayed elevated throughout the mentioned time span because of firm offtakes from the downstream agrochemicals area, while guaranteeing firm supply to the global market.

North America

Intriguing environmental catastrophe upset the production action of the chemical across the area during Q1 2021. In the midst of fair demand from the downstream ink producers and compost area, supply stayed restricted all through the quarter. Basic deficiency of key natural substances like ammonia because of various plant closures upheld the costs and thus the costs of nitric acid rose from 320 USD/MT (January 2021) to 335 USD/MT (March 2021). It was expected that the costs might quit speeding up in Q2 2021, as the US production line was returning on target.

Europe

The European nations experienced a precarious ascent in costs of imported nitrogen-based manures during this period. The chemical’s demand from farming area remained reliably solid because of the upcoming spring season. Albeit weak supply, constrained dealers looked forward for imports, however that also emerged as a top-notch choice, because winter season transportation exercises were additionally noted upset across the region.

Demand for the chemical in Europe stayed unassuming during April-June, supported by stable offtakes from the homegrown agrochemicals area. Taking off feedstock ammonia costs likewise affected the general value pattern of the chemical across the region. The market climate exhibited a positive pattern across the European region in Q3 2021. The new flood in European petroleum gas costs had set off huge production abridgements in the region, driving up the worldwide price of the chemical.

Azotic Acid Price Trends for the Year 2020

Asia

The Chinese market was firm till mid-November after which it got tightened with offers going smothered throughout the year-end market hush. India announced immense deficiency of feedstock ammonia which incited expansion in the chemical’s costs moving into December. Nitric acid prices rose from 125 USD/MT in Q2 to 285 USD/MT in Q4. In the interim, the Indian govt.

Declared an immense venture of USD 5527.5 million over the agrochemical area to further develop the production limit of manures in the homegrown market. Utilization from the downstream polyurethane producers revealed consistent development in deals across Asia-Pacific during Q4 2020. This development arose from the improvement in the construction sector, which eventually prompted the ascent in demand of the chemical.

Procurement Resource provides latest prices of Nitric Acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.