Nitric Acid Prices to Remain Robust, Keeping the Upward Trend Intact
- 24-Jun-2022 8:55 AM
- Journalist: Harold Finch
New Delhi, India: The cost of producing fertilizers has inevitably increased due to the prices of essential raw materials like Ammonia, Phosphoric Acid, and Muriate of Potash. Further shortage of raw materials like muriate of potash was caused by the war situation in Russia and Ukraine. To ensure that farmers can afford the expenses of NPK fertilizers, the Government of India has increased NPK fertilizer subsidies. For the portion of the industries producing Nitric Acid, formula-based contracts are used to pass on increases in raw material costs.
Nitric Acid demand and prices are set to continue to be robust due to the declining availability of Nitric Acid downstream from China and the resulting higher pricing. The need for explosives in the mining & infrastructure sectors of the Indian economy is anticipated to rise along with the growth in the production of coal, steel, and cement. DFPCL (Deepak Fertilisers and Petrochemicals Corporation Ltd.) is anticipated to gain from strategically focused marketing initiatives from crop-specific products to farmer-oriented campaigns.
DFPCL is increasing its bases for acquiring raw materials and optimizing the portfolio to guarantee that corporate operations run smoothly. We continue to work hard to change from a commodity to a specialized approach in each product sector, and we anticipate long-term development as a result. They confirm in a news release that they aim to increase their operational capacity in the future. The debottlenecking of the NPK (Nitrogen-phosphorus and Potassium) facilities has dramatically influenced the production capacity at the Taloja facility.
As per the ChemAnalyst expert’s assumptions, the market dynamics of Nitric Acid might showcase further robustness in the coming weeks across the Asian market. With lower-than-expected availability of raw materials, the downstream Ammonium Nitrate traders show would raise offers and stockpile new stocks.