US Nitrogen Prices Witness Oscillating Momentum By the Mid-Q1 of 2023
- 15-Feb-2023 12:01 PM
- Journalist: Patricia Jose Perez
Texas- Nitrogen prices in the US market observed mixed prices dynamics on account of fluctuating upstream Natural Gas prices accompanied by the downstream beverages and packaging sectors. Throughout January 2023, Nitrogen prices declined by an average difference of 5% as Natural Gas prices dropped in the international market. Nitrogen production is easily carried out by cryogenic methodology, where the gas components are separated based on their specific boiling points. US natural gas stockpiles declined in January by less than market insiders anticipated due to the warmer-than-average weather in January. However, towards the end second week of February, the market prices of Nitrogen inclined and ranged between USD 690-730 per MT, FOB Illinois (US), on the back of reviving Natural Gas prices and a better demand outlook.
The key facets governing the overall market sentiments of Nitrogen gas were upstream Natural Gas prices, the demand outlook, and the operational rates escorted by the production cost. The overall Natural Gas prices declined as the nation's temperature became warm, and a high supply rate was observed. Furthermore, the incorporation of Nitrogen during the winemaking process is a crucial step in sustaining its shelf life. According to the official data released by US officials, an overall decline yearly in wine consumption was seen, and the wine industries conquered a loss in new order placement till January 2023. Experts say that consumers have shifted their consumption quantity towards the safer side, leading to the price drop.
Rolling recession is a quick term used by most market insiders describing the current US market scenario where the manufacturer's end-use sectors are taking turns shrinking their operational activities rather than terminating the production of Nitrogen in one go. This methodology safeguards the manufacturers from facing overall loss due to economic uncertainty. As per ChemAnalyst, the final prices of Nitrogen are projected to incline in the US market owing to the inclining Natural Gas prices and inclined demand for Nitrogen from downstream (food packaging) sectors.