Decreased Raw Material Costs Drive Down Nitric Acid Prices Across the German Market

Decreased Raw Material Costs Drive Down Nitric Acid Prices Across the German Market

Decreased Raw Material Costs Drive Down Nitric Acid Prices Across the German Market

  • 24-May-2023 12:52 PM
  • Journalist: Francis Stokes

The German market for Nitric Acid has observed declining demand from domestic and international markets in recent weeks. The stable demand has likely contributed to the stability of Nitric Acid prices in the German market. Additionally, the decline in raw material prices has supported the price trend for Nitric Acid during this week.

With downward pressure on all fertilizer prices, the global Nitric Acid market is exhibiting depressing conditions. While the intermediates market is staying slightly above USD 300/MT, the cleaning chemicals market price is headed below last week's levels. Most suppliers are entirely available for June and July shipments and have no orders of Nitric Acid shipments on their books. The market is being shaken by China's re-entry into the export sector as well as the removal of export restrictions. This week, the downstream Ammonium Nitrate markets had very little liquidity. Buyers generally adopt a wait-and-see mentality since they anticipate  Nitric Acid price drops in June.

The price of feedstock Ammonia has stabilized in the international market, with Middle East FOB prices hovering around the USD 250/MT mark and CFR Europe prices between USD 360 and 370/MT CFR. With the Dutch TTF gas price increasing to USD 10 MMBTU and the cost of producing Ammonia at about USD 405/MT, European companies are now considering resuming their Ammonia production.

According to ChemAnalyst, prices for Nitric Acid are anticipated to stay low in the coming months because it is unlikely that demand will rise soon on either the domestic or international markets. The market's purchasing sentiments could also remain weak due to declining customer demand. Additionally, the collapse of the global market may cause a further decline in the nitric acid sector. In conclusion, too many products in the market are chasing too few customers, creating a perfect storm for potential buyers. To summarize, the fertilizer market is heading into a perfect storm for potential buyers, with too much product chasing too few buyers.


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