For the Quarter Ending December 2022
Nitric Acid prices remained low in the US market as the domestic demand for the product was low in the fourth quarter. The stagnant buying sentiments amongst domestic buyers throughout November 2022 and persisting lower output in the downstream industry with a rising recession in the region affected the pricing movement of Nitric Acid. The supply dynamics have gotten worse due to port congestion and logistics issues on the US Gulf and East Coast. The demand fundamentals have been constrained by the weak demand from the downstream agricultural industries, which has also affected trading sentiments on the regional market. Nitric acid 98% FOB New York (USA) was averaged at USD 393/MT.
Nitric Acid Prices have fallen in Asia as a result of market pessimism. A regular supply of the product in the market resulted in a decrease in the price of Nitric Acid. The cost of raw materials was reasonably stable, which aided the Nitric Acid industry. Nitric Acid price remained flat at USD 403/MT on a FOB Dalian basis due to muted demand in the domestic market with very few offtakes. Therefore, the same price lasts throughout November month. Due to flat downstream offers, muted market activity, and the destocking of stockpiled inventories, nitric acid prices remained bearish in the week ending December 23, 2022. Meanwhile, the stability of overseas offers in the Chinese market has influenced commodity pricing dynamics in mid-December 2022.
Nitric Acid prices in European countries fell along with the prices of most nitrates as there was low demand in the region coupled with bearish market sentiments. As favorable weather in the European region stabilized manufacturing costs by keeping the energy prices low throughout this timeframe, led Nitric Acid production costs continued to drop. During the mid-quarter, natural gas costs decreased as well, which led to a decrease in the price of Nitric Acid. After the peak period for agricultural demand had gone, downstream demand was low. The downstream derivatives industries' demand has remained poor to stable over the quarter. Nitric acid 98% FOB Hamburg was priced at USD 457/MT due to sufficient inventory levels being available to meet domestic needs.
For the Quarter Ending September 2022
Owing to sluggish downstream demand at the end of the spring agricultural season, Nitric Acid prices decreased in the domestic U.S. market during the third quarter of 2022, while Nitric Acid's direct prices remained unchanged. However, the upstream natural gas fluctuation helped the feedstock Nitrogen price experience small volatility. Sluggish and slow inquiries have caused lower price sentiments. Nitric Acid FOB New York prices were estimated at USD 395/MT. Additionally, the manufacturers reduced the product's worth due to the low operating rate and decrease in crude values. Demand from the agricultural sector remained relatively stagnant, although the Aniline market picked pace towards the quarter end.
Nitric acid prices in APAC have been volatile due to significant changes in market dynamics. The rise in natural gas costs has hampered the Chinese market for Nitrogen and Ammonia, which is utilized as a feedstock for the nation's production of Nitric Acid, and has further slowed production. Logistical problems and physical limitations in the supply chain from the mine to the manufacturing facilities have increased. Thoughts began to shift as China was hit by a dreadful heatwave that negatively impacted its economy. China's market also remained closed for 8-10 days after the power cuts, followed by the typhoon in the last quarter. Therefore, market activities kept on getting hampered. Nitric Acid FOB-Dalian was assessed at USD 396/MT in the previous month of the third quarter.
Nitric acid prices showed mixed sentiments in the Q3 of 2022. During the first month of the quarter, the prices declined, while in the latter half, offers soared. Initially, the global scarcity and increasing demand in the worldwide market hampered the Nitric Acid market sentiments. On the other hand, the downstream industries' weak demand fundamentals in July, including fertilizers and Ammonium Nitrate manufacturing. The increased demand for Nitric Acid in the global market brought the price rise in august due to the import ban. Furthermore, supply constraints persisted in the European markets, which made it challenging to price Nitric Acid in the third quarter.
For the Quarter Ending June 2022
During Q2 2022, Nitric acid Prices rose in the US market owing to strong demand from the downstream sectors. The rise in semiconductors demand and high operating rates in the automotive industries have influenced Nitric Acid costing. In addition, the demand for fertilizers was strong in the second quarter of 2022. The demand for nitric acid in the domestic market continued to be low and scarce on the supply front. Additionally, upstream values have been rising steadily for the entire month. Further, a dealer disclosed that nitric acid producers have run into trouble in the local US market. These businesses are being compelled to raise their selling prices due to rising natural gas prices, which are the source of this ammonia.
During Q2 2022, Nitric Acid Manufacturers dealt with many supply-chain issues, including rising energy, raw material, packaging, and transportation costs. Traders remained concerned about the Nitric Acid price hike, as they were already grappling with inflationary tendencies on numerous fronts. The price of raw materials continued to have a minor influence. Because of rising coal and Ammonia prices in China, the primary feedstock for Nitric Acid production, factories were compelled to curtail output, contributing to price increases. Nitric Acid prices have risen this quarter, causing downstream fertilizer prices to grow as well. To ensure domestic availability, China has stopped fertilizer exports until at least June 2022, adding to supply problems. Aside from input costs, the outlook's risks are determined by whether China's Ammonium Nitrate exports restart after June, a downstream derivative of Nitric Acid.
Nitric Acid costs have experienced yet another significant increase during Q2 2022. Global supply delays resulting from continued shipping issues have been vital in setting the material's final pricing. Meanwhile, the fertilizer and Ammonium Nitrate industries have increased demand for Nitric Acid. Nitric Acid costs on a FOB basis were estimated at USD 380 per MT in May. Given the ongoing turbulence in the global fertilizer and transportation industries, prices have increased by more than 5% since the beginning of the second quarter. During Q2 2022, supply chains have worsened as the ongoing war in Ukraine has hampered trading in Europe.
For the Quarter Ending March 2022
In Q1 2022, Nitric Acid prices in the North American region have kept the pricing trajectory upwards, particularly in the US. The prices of Nitric Acid in the United States have declined roughly about 8% in February. This steep rise was due to the soaring upstream Natural Gas and Coal prices and disrupted commodity supply chains due to western sanctions against Russia, which is the major exporter of feedstock Ammonia. The resultant sky-high fertilizer prices led to low consumption of Nitric Acid by farmers, which is the main negative factor in the regional market, along with a reduction in planting area across the US. During the winter slump, manufacturers felt little pressure to change their offers. So, the robust demand settled the price discussions at USD 380/MT for Nitric acid 98% FOB New York during March 2022.
Nitric Acid prices in the Asian market have been steadily rising throughout the first quarter of 2022 because of the scarcity of supplies in the region. Manufacturers were heard grappling with various supply-chain difficulties and increasing energy, raw material, packaging, and transportation costs. At the same time, most Chinese farmers and agrochemical experts reported a loss during the first quarter of 2022. Manufacturing activity increased in the export powerhouses of South Korea, despite supply chain disruptions and raw material shortages. The Nitric Acid price hike is undoubted because of the inflationary trends. The average price of domestic concentrated Nitric Acid, 98% Ex-Vadodara, during the month of March was assessed at USD617/MT.
In Germany, the prices of Nitric acid soared by 2.5% in March, backed by strong demand from downstream. The augmented demand for Nitric Acid in the domestic market of Germany was caused due to the increased need for fertilizers, worldwide. Furthermore, the demand for another downstream product, Polyurethane, was also high, resulting in increased Nitric Acid prices. In addition, the rising crude oil prices amidst Russia-Ukraine war tensions enhanced the upstream cost of Nitric acid, eventually contributing to the price hike. Altogether, the robust demand for fertilizers and Polyurethane and skyrocketing energy costs propelled the Nitric Acid prices in Germany. Conclusively, the prices for Nitric Acid 98% were evaluated at USD 420/MT FOB Hamburg during the first quarter of 2022.
During the fourth quarter of 2021, the prices of Nitric Acid escalated due to several factors, which included lingering hurricanes and other supply chain disruptions in the US gulf. Because of the high prices, some farmers were heard delaying purchases, risking a scramble for supplies during the most crucial time for farming. The downstream ammonium nitrate was found to be short on inventory levels due to the shortage of Nitric acid.
In Asia, the prices of Nitric Acid showcased mix sentiments throughout the fourth quarter of 2021. In China, the cost of Nitric Acid plunged in the time frame of October to November after registering record high estimates in the last quarter. Prices witnessed a fall backed by the decline in the demand from Agrochemical sector. Due to “the Dual Control policy” many agrochemicals and other chemical manufacturers were compelled to curtail their production by 50% that directly influenced the demand and pricing dynamics of the product. However, in December, prices of Nitric Acid attained marginal gains and listed around USD 480 per MT Ex Work Qingdao , backed by the buoyant demand from fertilizer segment and increasing cost of raw materials.
In Europe, the pricing trend of Nitric Acid experienced an upward trajectory backed by the spike in raw material such as ammonia and firm demand from downstream manufacturers including Agrochemicals and fertilizers. Moreover, the soaring energy prices in effect of natural gas crisis rocketed the production cost across the European region that also contributed to the pricing trend of Nitric Acid. Moreover, inflated freight charges and shortages of shipping containers further sent ripples to the values of Nitric Acid in this quarter.