For the Quarter Ending March 2025
North America
The North American Nitric Acid market saw a 2% quarter-on-quarter increase in Q1 2025. Early in the quarter, supply was disrupted due to extreme freezing temperatures that triggered a force majeure at OCI Beaumont LLC and maintenance shutdowns at key CF Industries plants, affecting ammonia availability—Nitric Acid’s primary feedstock. Logistics constraints in road and ocean freight further tightened raw material flows. Meanwhile, demand from the fertilizer sector surged as farmers accelerated purchases ahead of spring planting, driven by fears of shortages and anticipated tariff hikes. Industrial consumption remained strong, with proactive procurement by major agrochemical players.
By mid-quarter, production stabilized amid low ammonia prices, while buyers continued stockpiling nitrogen-based fertilizers to hedge against future uncertainties. The U.S. government’s proposed tariffs on imported fertilizers led to a shift toward domestically sourced materials, increasing Nitric Acid demand.
Towards the quarter’s end, North American nitric acid production aligned with seasonal fertilizer demand. A global ammonia oversupply reduced production costs, while falling freight rates eased logistics pressures. The quarter-end price for Nitric Acid DEL Texas was USD 277/MT, reflecting a balanced market with steady agricultural consumption.
APAC
The APAC Nitric Acid market registered a quarter-on-quarter decline in Q1 2025, driven by weak demand and reduced production across key regions. Early in the quarter, downstream sectors such as fertilizers and ammonium nitrate saw minimal activity, as many plants shut or cut operations ahead of the Spring Festival. On the supply side, several manufacturers paused production for adjustments, further tightening output. Following the holiday, operations gradually resumed, but demand recovery remained slow. Buyers focused on fulfilling backlogs rather than placing new orders, reflecting cautious sentiment. While ammonia prices held steady globally, improved vendor coordination enhanced supply chain efficiency, helping stabilize availability. The quarter closed weakly as ammonium nitrate plants in northern regions operated at reduced capacities, maintaining only essential purchases. Despite rising ammonia feedstock costs, ample inventories, and competitive imported nitric acid (aided by lower freight rates) forced domestic suppliers to adopt discounts. Thailand witnessed the most significant change with a noticeable drop of 4% in Q1 2025 compared to Q4 2024, with the quarter-end price settling at USD 310/MT CFR Phuket, reflecting lacklustre demand and limited buying interest.
Europe
The European Nitric Acid market registered a quarter-on-quarter price incline of 5.5% in Q1 2025, driven by firm seasonal demand and elevated input costs. At the start of the quarter, prices surged as soaring natural gas costs led producers like SKW to reduce ammonia output, tightening regional supply. The weak euro further inflated import costs, while fertilizer producers accelerated output ahead of the spring planting season, sustaining robust demand. Mid-quarter, prices remained high, supported by steady agricultural consumption and rising uncertainty around proposed sanctions on Russian fertilizer imports. This prompted buyers and traders to stockpile nitric acid, reinforcing demand and encouraging a shift toward localized production to offset expected import disruptions. By the quarter’s end, a decline in ammonia prices and reduced freight rates slightly eased production costs. However, consistent offtake from the fertilizer sector-maintained price stability despite the cost relief. Germany saw the sharpest movement, with prices rising 5.5% from Q4 2024 and closing the quarter at USD 447/MT FOB Hamburg, reflecting the overall tightness in supply and steady downstream demand.
For the Quarter Ending December 2024
North America
The North American Nitric Acid market experienced fluctuating price trends throughout Q4 2024, ultimately ending the quarter with a modest 1% increase compared to Q3 2024. Early in the quarter, the market saw price stability, even amid short supply. However, demand was dampened by Hurricane Helene’s impact, which destroyed significant portions of Georgia's peanut, cotton crops, reducing fertilizer demand, limiting nitric acid consumption.
As the quarter progressed, prices declined further due to higher inventories and cautious sentiment in the fertilizer sector. Rising feedstock costs, including ammonia and natural gas, provided little support, as adverse weather disrupted agricultural cycles. Persistent rains and drought in key regions delayed fertilizer applications, maintaining weak demand.
By the quarter’s end, the market showed signs of recovery driven by higher production costs due to elevated feedstock prices, along with supply constraints from logistical disruptions. Pre-buying activity from the agricultural sector, driven by expectations of a robust spring planting season with 92 to 94 million acres of corn, boosted demand. This late-quarter recovery highlighted improved sentiment, culminating in a slight price increase by quarter-end. According to ChemAnalyst, the quarter-ending price of Nitric Acid 98% FOB New York was USD 288/MT, reflecting the prevailing market conditions.
Europe
The European Nitric Acid market followed an upward trajectory in Q4 2024 increasing by 4% compared to last quarter, fuelled by constrained supplies, escalating production costs, and short-term demand surges. Early in the quarter, prices spiked due to sharply higher feedstock ammonia and natural gas costs, driven by geopolitical tensions and colder weather patterns. Production cuts, including Yara’s ammonia plant closure in Belgium, alongside logistical disruptions at Hamburg’s Container Terminal Altenwerder, exacerbated the supply squeeze. Despite weak demand from Germany's fertilizer sector due to low grain prices, reduced farm incomes, and delayed agricultural cycles, limited inventories kept the market firm. Mid-quarter, prices saw a slight dip as improved supply met subdued demand, particularly from Germany, where wholesalers faced slow sales amid full warehouses and logistical challenges. By quarter’s end, prices climbed again, supported by elevated production costs and a surge in agricultural procurement as farmers secured fertilizers ahead of spring planting. While demand remained cautious due to financial pressures, pre-emptive stocking bolstered the market, setting a positive tone for early 2025 amidst ongoing cost and logistical challenges. As per ChemAnalyst, the later quarter ending price of Nitric Acid FOB Hamburg stood at USD 422/MT.
APAC
The Asian Nitric Acid market experienced a significant price decline in Q4 2024, decreasing by 8% compared to Q3. Early in the quarter, demand remained subdued due to the seasonal slowdown and reduced fertilizer production, leading to muted domestic transactions and a weak trading environment. Exports to the European market also fell due to low demand, adverse weather, and reduced purchasing power. Mid-quarter, a slight uptick in prices was observed due to increased domestic demand during the winter storage season. This provided some temporary relief to manufacturers. However, this increase was short-lived, as subdued demand and ample supply persisted with stable production levels fulfilling domestic needs despite ongoing maintenance at smaller facilities. Particularly in China, elevated factory and port inventories reflected the challenges in clearing stockpiles amidst low export orders and soft local demand. While supply reductions following maintenance shutdowns offered marginal support to market sentiment, they were unable to counterbalance the prevailing downward pressure. By the end of the quarter, the price for Nitric Acid 98% FOB Dalian stood at USD 261/MT, reflecting the ongoing negative sentiment in the pricing landscape, and underscoring the challenges faced by the Nitric Acid market in the APAC region.
For the Quarter Ending September 2024
North America
The North American Nitric Acid market experienced fluctuating price trends throughout Q3 2024, primarily remaining on the lower end. Early in the quarter, prices saw a notable decline, driven mainly by weak demand from the key downstream fertilizer sector. Traders attempted to stimulate prices in anticipation of increased demand ahead of the planting season, but these efforts largely fell short.
Adverse weather conditions, including hurricanes, heavy rainfall, and storms, significantly impacted agricultural cycles and further restrained demand for nitric acid. While there was a modest price recovery in August 2024, it was primarily linked to supply shortages rather than a genuine resurgence in demand. The hurricanes caused considerable production disruptions, limiting the availability of nitric acid in the market, and exerting some upward pressure on prices.
However, by the latter part of the quarter, prices began to stabilize as the market adjusted to production setbacks. Despite this stabilization, demand remained relatively weak due to ongoing weather-related challenges. According to ChemAnalyst, the quarter-ending price of Nitric Acid 98% FOB New York was USD 288 per metric ton, reflecting the prevailing market conditions.
APAC
In Q3 2024, the Nitric Acid market in the APAC region experienced a steady decline in prices, driven by several key factors. The market faced a significant downturn, with prices falling sharply due to weak demand across various industries. Contributing factors included reduced procurement activities, lacklustre performance in end-user sectors, and adverse weather conditions. China, in particular, witnessed the most significant price fluctuations, mirroring broader regional trends. On the supply side, an increase in domestically produced Nitric Acid in China contributed to the downward pressure on prices. This heightened supply situation is primarily attributed to persistent global port congestion. Overall, the market recorded a 2% decline compared to the previous quarter. The latter half of the quarter showed a slight improvement, with a -1% change from the first half. By the end of the quarter, the price for Nitric Acid 98% FOB Dalian stood at USD 297/MT, reflecting the ongoing negative sentiment in the pricing landscape, and underscoring the challenges faced by the Nitric Acid market in the APAC region.
Europe
During Q3, the European Nitric acid market experienced a significant surge, particularly in Russia, the Netherlands, and the United Kingdom. This increase in prices was mainly attributed to a shortage of raw materials in the European market. The shortage stemmed from Ukraine’s incursion into Russia’s Kursk region, where the critical Sudzha gas transit station is located. Disruption at this key transit point created a ripple effect, impacting European gas supplies and further intensifying the regional shortage of upstream Natural Gas and feedstock Ammonia. To compound these challenges, a major Nitric Acid-producing unit, BASF's Ludwigshafen plant, declared force majeure due to an explosion at the facility. This disruption has further tightened the supply chain. The severe scarcity of this essential raw material directly affected nitric acid production, resulting in reduced output levels, and contributing to the rise in nitric acid prices. Demand for nitric acid remained moderate, driven by domestic requirements and orders from European importers. However, this demand was largely concentrated among smaller buyers within the region, reflecting a cautious market outlook. Additionally, the market faced further challenges due to fluctuating weather conditions, which impacted demand from the major downstream fertilizer sector. These unpredictable weather patterns made it difficult for farmers to forecast their fertilizer needs, creating a more volatile demand environment. As per ChemAnalyst, the later quarter ending price of Nitric Acid FOB Hamburg stood at USD 412/MT.
For the Quarter Ending June 2024
North America
During the second quarter of 2024, the North American Nitric Acid market experienced a notable decrease in prices, influenced by several key factors. Primarily, a decline in demand from the domestic fertilizer sector was a major driver of the price reduction. Unfavorable weather conditions, including extreme heat waves and disruptions caused by geomagnetic storms, resulted in a subdued planting season, leading to decreased demand for fertilizers, including Nitric Acid.
Additionally, international demand, particularly from European countries such as Norway and Spain, remained weak due to adverse weather events, including windstorms and floods, which further suppressed the need for Nitric Acid. Another contributing factor to the price decline was a slight reduction in the cost of essential feedstock, ammonia. The lower production costs for Nitric Acid, resulting from this reduction, exerted downward pressure on prices.
Furthermore, the market experienced an ample supply of Nitric Acid, which contributed to the overall price decrease. By the end of the quarter, the price for Nitric Acid in the USA was recorded at USD 270 per metric ton for Nitric Acid 98% delivered to Texas, reflecting the cumulative impact of these factors on the market.
APAC
The Nitric Acid market in the Asian region displayed mixed trends throughout the second quarter of 2024, with notable fluctuations observed in China. Prices declined during the first and third months of the quarter but increased in May. The price declines were primarily attributed to an oversupply of Nitric Acid in the Chinese market. This oversupply resulted from the resumption of operations at major production facilities, such as Anhui Haoyuan and Fujian Wanhua, and a reduction in demand for Nitric Acid derivatives, including Glyoxylic Acid. In contrast, prices surged by 6.3% in May 2024. This increase was driven by active stockpiling activities as consumers prepared for the upcoming Rice and Cotton planting seasons, capitalizing on favorable planting conditions within the country. Despite this domestic upturn, international demand remained moderate. In particular, the European market continued to face challenges due to persistently wet and waterlogged fields, which hindered crop cultivation efforts. Additionally, demand for Nitric Acid's other essential downstream derivative, Adipic, remained strong, supported by robust performance in the downstream sector. Textile, electrical, and modification enterprises have been adhering to routine stocking and consumption practices, with most procurement operations focused on production. Market insights indicated substantial growth in production and sales volumes of automobiles during the first quarter, with expectations for further expansion in the near future.
Europe
The European Nitric Acid market exhibited mixed trends throughout the second quarter of 2024, with prices fluctuating during the period. Prices decreased in the initial and final months of the quarter but rose in May. The initial price decline was primarily driven by reduced demand for fertilizers, including Nitric Acid, due to inconsistent and unfavourable weather conditions across the region. The European Union was particularly affected by excessive rainfall in countries such as Austria, France, Italy, Germany, and the Netherlands. These adverse weather patterns negatively impacted crop growth and disrupted field operations, introducing uncertainties into agricultural activities and significantly influencing Nitric Acid demand. As a result, farmers and agricultural stakeholders faced challenges in managing crops, which diminished the immediate need for Nitric Acid as a fertilizer. However, in May, prices surged by 1.2% due to a shortage of Nitric Acid in the market. Torrential rains and subsequent flooding in southern Europe necessitated evacuations and caused widespread infrastructure damage, especially along the crucial industrial shipping route of the River Rhine. This disruption contributed to the reduced availability of Nitric Acid, driving prices higher. Additionally, demand for Nitric Acid's essential downstream derivative, Adipic Acid, remained strong, supported by robust performance in the downstream sector. Industries such as textiles, electronics, and modification enterprises maintained their routine stocking and consumption practices, with most procurement operations focused on production needs. This steady demand in the downstream sector further supported the rise in Nitric Acid prices during the month.
