Further erosion of RAW material cost increasing is :
North America
The weak demand from downstream industries and the high cost of production in the North American region guided the price trend's 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 trend's 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.
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.
Nitric Acid Price Trends for the First and second Half of 2023
Asia
The price trend's 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.
Regions covered
Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
Industrial Uses
Fertilisers, Oxidising agents, Textile industry, Metal nitrates and inorganic nitrate salts, Various organic intermediates, Plastics, Dyes, explosives, Metal cleaning, Woodworking