For the Quarter Ending March 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending December 2021
North America
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.
Asia
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.
Europe
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.
For the Quarter Ending September 2021
North America
The overall market of Nitric acid showcased an upward trajectory in the 3rd quarter of 2021 across the Asia Pacific region. In the US market, demand for conc. Nitric Acid had been steady in driven by increased demand from the agrochemicals industry during the peak cropping season. Prices of Nitric Acid remained bullish during the 1st half of Q3 while a slight uptrend was observed in the 2nd half owing to a lag on the supply side. Increasing demand from the mining explosives industry is likely to keep the prices afloat going into Q4.
Asia
The Asian market witnessed a significant rise in the prices of Nitric Acid during the third quarter of 2021. The demand for Nitric Acid remained strong in the Chinese domestic market from the agrochemicals sector, while ensuring firm supply to the international markets. Soaring feedstock prices and high freight costs translated into increased Nitric Acid prices across the region. In India, prices of Nitric Acid 68%- escalated from USD 340 to USD 423 per MT from July to September. Traders reported that strong inquiries from domestic buyers increased as most of them are left with considerably low inventories amidst the strong downstream demand. In addition, an abrupt global shortage of Ammonia and Nitric Acid provided room to several manufacturers to fetch better netbacks.
Europe
The market environment demonstrated a positive trend across the European region in Q3 2021, with increased pricing reflecting both strong demand and a tight supply situation. The recent surge in European natural gas prices has triggered significant production curtailments in the region and driven up global Nitric Acid prices. On 14 July 2021, the European Commission adopted a proposal for a Carbon Border Adjustment Mechanism (CBAM) in order to prevent carbon leakage and create incentives for raising climate ambition in non-EU states. The production of fertilizers, and thus nitric acid, is among the sectors affected by CBAM.
For the Quarter Ending June 2021
North America
The demand for Nitric Acid remained stable during this quarter across the North America region, backed by improved downstream activities across the region. The prices kept fluctuating throughout the quarter in USA. While offers increased effectively during the first half of the quarter due to soaring feedstock Ammonia prices, prices eased considerably in the later half with improvement in market supplies. A key North American producer reported stronger Nitric Acid sales in Q2 due to surge in industrial demand with the ramp up of a new Nitric Acid offtake agreement with the demand exceeding pre-pandemic levels.
Asia
Nitric acid market showcased firm sentiments during this quarter. In China, demand for Nitric Acid remained uplifted due to firm offtakes from the downstream agrochemicals sector, while ensuring firm supply to the international market. Moreover, prices gained momentum due to soaring feedstock prices in the domestic market and increased further for importing countries due to high freight cost. While in India, prices tumbled during the month of May due to pandemic mayhem in the country, which later improved by the end of the quarter. The price of Nitric Acid in India settled at INR 300/MT during the last week of June in India. South Korean market prospects turned positive after the chemical giant Hanwha announced investment of around USD 170 Million at its existing Nitric Acid manufacturing facility to increase the overall capacity by 400 KTPA, which is expected to be completed by 2023.
Europe
Demand for Nitric Acid in Europe remained modest during the quarter, backed by stable offtakes from the domestic agrochemicals sector. Soaring feedstock Ammonia prices also impacted the overall price trend of Nitric Acid across the region. Meanwhile, the demand from other sectors like TDI remained dull throughout the quarter and showcased some signs of recovery by the end of June. Demand from Aniline manufacturers also remained firm during the quarter. In addition, high freight cost also exacerbated the overall price of Nitric Acid of the region.
For the Quarter Ending March 2021
North America
Rare climate calamity disturbed the production activity of Nitric Acid across the region during Q1 2021. Amidst fair demand from the downstream ink manufacturers and fertiliser sector, supply remained limited throughout the quarter. Critical shortage of key raw materials like Ammonia due to multiple plant shutdowns supported the prices and hence the prices of Nitric Acid rose from USD 320 per MT (January 2021) to USD 335 per MT (March 2021). It is anticipated that the prices may stop accelerating in Q2 2021, as the US production line is coming back on track.
Asia
Strong demand from the downstream fertiliser sector amid critical shortage of feedstock chemicals drove the Asian Nitric acid market during Q1 2021. In the Indian market, due to extended turnaround of major feedstock Ammonia plant created a domestic supply shortage. In addition, Chinese lunar new year holidays also impacted the supply activity across the region. Post-holiday restocking propped up the prices of Nitric Acid in the Chinese and Indian markets. Prices ended up settling at USD 1648.46 per MT in India during March end. Although the prices also received a further push from continuously rising freight prices and shortage of shipping containers.
Europe
The European countries encountered a steep rise in prices of imported Nitrogen based fertilisers during this period. Nitric Acid demand from agriculture sector remained consistently strong due to the arrival of spring season. Although feeble supply, forced traders to look forward for imports, but that too came out as a premium option, as due to winter season transportation activities were also noted disturbed across the region.
For the Quarter Ending December 2020
Asia
The Chinese Nitric Acid market was firm till mid-November after which it started tapering off with offers suppressed over the year-end market lull. The production of nitric acid in some areas remained halted, thereby tightening the supply in short term. India reported huge shortage of feedstock Ammonia which prompted increase in the prices Nitric Acid moving into December. Nitric Acid prices rose from USD 125 per tonne in Q2 to USD 285 per tonne in Q4. Meanwhile, the Indian govt. announced a huge investment of USD 5527.5 million over the agrochemical sector to improve the production capacity of fertilizers in the domestic market. Consumption from the downstream polyurethane manufacturers which reported steady growth in sales across Asia pacific region during Q4 2020. This growth was derived from the improved construction sector, which ultimately led to the rise in demand of Nitric Acid.
Europe
Lower automobile manufacturing meant a significant drop in the consumption of PU during the last quarter of 2020 due to spike in COVID-19 cases and fresh lockdowns imposed in some countries. This fall was said to have significantly impacted the demand of Nitric Acid. However, by mid-December, prices for most of the fertilizer products surged to fresh highs as the key raw materials (including nitic acid) started gaining momentum towards the end of Q4 due to recovering demand and production constraints prevailing due to the weather-related problems.
North America
The fourth quarter performance of the North American market seemed to improve both in terms of demand and supply of Nitric Acid. Sales of Nitric Acid were down in Q4 2020 compared to Q4 2019 but showed a significant rise over the third quarter. This improvement in sales was mainly driven by the agriculture sector. A large volume of the product was consumed in the production of downstream polyurethane, a key raw material in foam manufacturing .CF industries, a leading fertilizer manufacturer in the region, invested USD 41.4 million into nitrogen-based fertilizer manufacturing plant with plans of boosting its Nitric Acid production capacity.
