Nitric Acid prices in India have increased rapidly due to a shortage of supply
- 31-Jan-2022 1:49 PM
- Journalist: S. Jayavikraman
Nitric Acid prices in the Indian market have been steadily rising throughout January because of the scarcity of supplies. At the start of the month, the upstream liquid Ammonia market was mostly steady. As the year began, the domestic manufacturing price of downstream Ammonium Nitrate declined by roughly 8 percent, resulting in higher demand. The average price of domestic concentrated Nitric Acid 98% Ex-Vadodara, according to ChemAnalyst's database was INR 42530/MT during the month of January.
Manufacturers are grappling with a variety of supply-chain difficulties, as well as rising energy, raw material, packaging, and transportation costs. While most farmers and agrochemical experts reporting loss this week expressed hope, the pressure will be passed on to consumers, placing even more strain on the prices. The Nitric Acid price hike is certainly concerning for carriers, who are already battling with inflationary tendencies on several fronts. Indeed, the price of raw materials continues to have a minor influence. The risk to the product's availability, on the other hand, is a lot more alarming.
While price-induced Nitric Acid thrifting in agrochemicals applications has basically run its course, a little increase in demand is expected. as demand from the Nitric Acid sector recovers following price-induced substitution last year, and a slight growth in other end-uses Even in this quarter, there have been some concerns with the Nitric Acid. It is not the pricings that are the issue here; rather, it is the availability of nitric acid.
As per ChemAnalyst, Nitric Acid price are anticipated to remain on the inclining trajectory during February due to the Chinese New Year and upcoming winter Olympics is going to hamper the imports as production activities are to remain halted. However, As the production activities may ease, and the supply shortages gets improved during March, it is anticipated that price may get stabilized.