For the Quarter Ending June 2023
North America
Throughout the second quarter of 2023, Nitrogen price dynamics moved in the southward direction on account of a weak demand outlook and a smaller number of inquiries faced by Nitrogen gas producers. In spite of the minimal expense of domestic nitrogen production, the market, in general, is in decline. Since there was no interest in the item in the fer market upstream, a homegrown result of nitrogen in the US market stayed restricted. Average industrial results were delivered, and production costs varied with the cost of natural gas. Also, The US House of Representatives suspended the obligation debt ceiling rate to handle the disturbed economy of the nation and give better capital. In spite of Congress' structure to endorse the undertaking, a government requests court has impeded development on a piece of a contentious natural gas pipeline that is being worked through Virginia and West Virginia. Additionally, the Union Strike of the West US protest had affected the general progression of the functional exercises happening in the country.
APAC
Nitrogen price dynamics throughout the second quarter of 2023 remained on a higher edge on account of inclined demand from fertilizer, mining, metals, and electronics, and the natural gas prices remained on a positive note throughout the quarter. Nitrogen prices in the Indian market flooded on the record of slanted request viewpoint for the item from the packaging area alongside the pharmaceutical area. The inventories were sufficient, and the modern result in the nation had definitely slanted. The purchasing index in the nation was the most elevated when contrasted. The suppliers got persistent requests about the item. The additive nature of the gas raises its utilization rate and amount in the homegrown market to save the examples in the medical services area. Nitrogen gas gives better tension maintenance in tires swelled with it when contrasted with traditional air-filled tires. The implementation of new agricultural policies, along with the subsidies provided by the Indian government, favored the production and purchasing rate of nitrogen-based fertilizers in the Asia-Pacific market.
Europe
Nitrogen prices in the European market declined in the second quarter as the demand remained under pressure and the buyers restricted themselves from placing higher orders. With flammable gas being the essential feedstock in nitrogen composts, high petroleum gas costs kept the vast majority of the nitrogen manure creation disconnected all through the EU. European region fertilizer production returned, import requests faded, and worldwide compost costs relaxed thus. International Fertilizer Association (IFA) said the effect of approvals, high natural substance expenses, and commodity limitations prompted the possibility of an emphatically discounted compost supply, and greater costs prompted request obliteration in moderateness-driven markets. With fertilizer supply a question of food security and monetary dependability, legislatures across the world have taken on a more proactive way to deal with getting actual supplies. Moreover, the European region stumbled on economic grounds as the region entered recession, and the European Central Bank raised the interest rate impacting the overall commodity prices and negatively affecting buyers and gouging the administration's area.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the market sentiments of Nitrogen fluctuated in the North American region on account of demand strength and production cost. Nitrogen final prices in the US market fell due to dropping upstream (natural gas) prices and weak demand for the product. The stock of inventories was adequate to meet domestic demand. Despite the low cost of domestic Nitrogen production, the overall market is declining. Domestic Nitrogen output in the US market remained limited since there was little upstream demand for the product in the fertilizer market. Average industrial outputs were produced, while production costs varied with natural gas prices.
APAC
In the first quarter of 2023, Nitrogen prices showcased mixed sentiments in the Asia-Pacific market owing to the fluctuating demand outlook. Towards the start of the quarter, the declining natural gas prices proportionally governed the Nitrogen prices in the Asian market. The commodity was scarce for the suppliers and end-user manufacturing plants. The decrease in natural gas prices lowered production costs towards the mid-quarter. Nitrogen market prices increased in the regional market due to increased demand from the packaging and fertilizer industries. According to market participants, prices increased in response to a jump in downstream demand from the local food and beverage businesses.
Europe
In the first quarter of 2023, Nitrogen prices inclined drastically in the European market due to the inclined demand outlook. In the first half of the quarter, Nitrogen prices declined, accompanied by natural gas (upstream) prices and slow demand. However, as the spring season approached, the demand for Nitrogen inclined significantly, inclining the overall market prices of Nitrogen in the European market. Furthermore, the packed food items and frozen edible things showcased a better demand outlook throughout the first quarter of 2023. The industrial activities in the regional market are inclined to showcase better productional rates and purchasing activities.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the market sentiments of Nitrogen fluctuated in the North American region on account of demand strength and production cost. In the first half of the quarter, the prices witnessed stagnancy as the demand for Nitrogen from the fertilizer sector, along with food and beverages, was stagnant. The suppliers witnessed frequent inquiries as a ripple effect, and the final prices were kept steady. However, towards the quarter's end, the market prices declined sharply as the festive holidays, and storm Elliot hampered the supply chain in the regional market. Furthermore, the demand for the product from the agricultural sector declined along with the food and beverages sector. The unemployment rate in the country stabilized towards the quarter end, and the fear of economic recession in the country shrouded the US.
APAC
In the fourth quarter, the prices of Nitrogen in the Asia-Pacific market dipped by 7% on account of declining demand for the product. According to the Indian government's official statement, the country had an ample amount of fertilizer stockpile to cater to the domestic market for the rabi season, proportionally impacting the final market price of Nitrogen. The demand for the product from the pharmaceutical and food & beverages sector in the Asian market remained moderate. The Wholesale price index (WPI) throughout the quarter fluctuated and declined slightly in December. The manufacturing output in the Indian market inclined towards the quarter end and the demand outlook also improvised.
Europe
The prices of Nitrogen showcased a declining trend in the fourth quarter of 2022 in the European markets. The capacity of Europe to generate nitrogen-based fertilizer was diminished because of certain big businesses cutting their output in response to increasing energy costs and declining demand strength. Following the natural gas supply disruption, regional inflation has limited the manufacturer's ability to produce Nitrogen. Furthermore, the demand for the product from the fertilizer market remained modest. Rising wage costs and interest rates hinder the overall market. The European market also witnessed a decline in chemical industries and the output capacity throughout the quarter.
For the Quarter Ending September 2022
North America
Throughout the second quarter of 2022, Nitrogen prices showcased mixed sentiments in the United States. The increased demand for nitrogen fertilisers in America towards the start of the quarter proportionally governed the market prices of Nitrogen. The regional market's energy prices continued to increase, impacting production costs. Towards the quarter end, the demand from downstream, fertilizer, and food services declined as the harvest of crops such as corn and cotton occurred. Furthermore, the restricted demand from the buyers' side was witnessed by major suppliers as the buyers were not ready to purchase the increased prices of Nitrogen. The price of Nitrogen at the end of Q3 2022 was estimated to be around USD 755/MT FOB Illinois (USA).
APAC
In the third quarter, the prices of Nitrogen in the Asia-Pacific market showcased mixed sentiments. The demand from downstream (nitrogen-based fertilizer) increased towards the start of the quarter due to the Kharif season. Towards the quarter end, the harvesting period started proportionally declining the prices in the Indian market. The manufacturing output increased amid global inflation and rising economic threats. End users had sufficient inventories to cater to the domestic demand. Furthermore, the energy cost remained slightly on a higher edge impacting its production cost. At the end of the third quarter of 2022, the prices of Nitrogen on the Indian market were USD 194/MT Ex-Taloja.
Europe
The prices of Nitrogen showcased mixed sentiments throughout the third quarter of 2022 in the European markets. Some major manufacturers reduced their production output due to skyrocketing energy costs, significantly reducing Europe's capacity to produce nitrogen-based fertilizer. Inflation in the region after the natural gas supply disruption has restricted the manufacturer from producing Nitrogen. Due to the disruption in supply brought on by the Russian action against Europe, the upstream natural gas prices throughout the continent are skyrocketing. High wage bills and higher interest rates also slowed the demand from downstream industries. The demand from downstream sectors also declined in the regional market.
For the Quarter Ending June 2022
North America
The price of Bulk Nitrogen rose throughout the second quarter of 2022 in the United States of America. However, the primary reason behind the hike in price is the high demand for nitrogen fertilizers in America and the shortages of nitrogen-based fertilizers in the region. America was dependent on Russian imports for its majority fertilizers requirement, and the ban on Russian imports by the US for Moscow’s invasion of Ukraine, which further pressurized the bulk nitrogen prices. Bulk Nitrogen price during the end of Q2 2022 was recorded at around USD 760/MT. High demand for Nitrogen fertilizer in the US market owing to an increase in wheat cultivation to reduce dependency on Ukraine imports aided the rising price trend of nitrogen in the US during Q2 2022.
APAC
The price of Bulk Nitrogen in the Indian market peaked in April and then eased during MAY, and the price rose again at the end of the second quarter. The prices of Bulk nitrogen hiked due to the high demand for nitrogen-based fertilizer. Increased wheat production in India in an attempt to fill the void left by the lack of Ukraine’s wheat in the global market raised the demand for downstream nitrogen-based fertilizers even more. The price of Bulk nitrogen in the Indian market at the end of Q2 2022 was INR 15415/MT. The price peaked during April due to the supply disruption caused by the war in Eastern Europe, as Russia was the highest exporter of nitrogen-based nitrogen to India.
Europe
In the European Markets, the price of Bulk nitrogen witnessed a price hike throughout the second quarter of 2022. The sky-rocketing demand for downstream nitrogen-based fertilizers was the primary factor driving up the price in the continent. The cost of upstream natural gas on the continent is soaring due to the supply disruption caused by the ongoing war between Russia and Ukraine. The ban on natural gas imports from Russia further pressurized the price of Nitrogen in Europe. Due to the energy crisis in the continent, many fertilizers manufacturers had to suspend their operations, worsening the price condition of Nitrogen in Europe. The price of Bulk Nitrogen during Q2 2022 was recorded at around USD 740/MT.
For the Quarter Ending March 2022
North America
The disruption in the supply chain and high freight charges owing to the ongoing war between Russia and Ukraine increased the prices of Bulk nitrogen in the American market. As the sowing season is usually around the end of April or the beginning of May, farmers tend to stock the downstream fertilizers during the first quarter of the year especially in America where the cultivation is comparatively done on a large scale. Bulk Nitrogen prices in the USA increased by nearly 2% in the USA. The Chinese government’s decision to ban the exports of fertilizers to meet the needs of its domestic market also aided the upward trend of Bulk Nitrogen in the American market during Q1 of 2022.
Asia Pacific
Bulk nitrogen prices soared in the Chinese market during the first quarter of 2022 as there were several production halts on account of Winter Olympics held in Beijing. The rise in upstream natural gas and fuel prices worsened the situation of Nitrogen prices. Other Asian market also saw a surge in Nitrogen prices as China banned the exports of downstream fertilizers to meet the growing demand of its domestic market. The Indian market witnessed a hike in demand of bulk nitrogen due to the approaching of sowing season for Zaid crops (summer crops). In India prices rose due to the lack of supply on fertilizers from China. In India Bulk Nitrogen prices were assessed at USD 197/MT in March.
Europe
European market witnessed a huge hike in prices of Bulk Nitrogen due to the high demand from the downstream fertilizer industry. Especially nitrogen-based fertilizer remained in high demand as sowing season of crops like wheat, corn is approaching, and farmers tend to stock on fertilizers. Since natural gas plays a vital role in production of fertilizer, high prices of natural gas due to bans on imports of Russian oil and gas act as an opposition for Moscow’s invasion of Ukraine therefore prices of Bulk Nitrogen values witness uptrend. Many South American countries depend on European exports for fertilizers, and this further pressurized the demand for Nitrogen and contributed to the upward trend of Bulk Nitrogen prices by nearly 3% in Europe during Q1 of 2022.
For the Quarter Ending December 2021
North America
The pricing trend for Bulk Nitrogen depicted an upsurge in the US domestic market during the fourth quarter of 2021, backed by the high demand from fertilizer sector. The prices for the bulk nitrogen were evaluated at USD 480/MT FOB Illinois in December ending. The demand for fertilizers went high worldwide along with its prices owing to the rise in prices of natural gas and fuel. Furthermore, corn, wheat, and soybean which are among the major fertilizer requiring crops are largely produced by the US. Consequently, resulting in even more demand for the product. Moreover, disruption in supply chain and distribution along with a hike in shipping charges were among the major factors contributing to a rise in the prices of Bulk Nitrogen.
Asia
The prices for bulk nitrogen projected upwards in the Asian market during the fourth quarter of 2021. The pricing trend was higher in the Chinese market owing to the high demand for nitrogen-based fertilizer. In addition, the supply of fertilizers was not corresponding with the demand due to a surge in natural gas price and fuel, halting energy-intensive processes and disrupting supply chains. Likewise, the bulk Nitrogen prices were soaring in the Indian market as well. The reason for the same was the high demand for fertilizers due to the ongoing rabi season or sowing season for winter crops. Another reason for the surging demand and prices of fertilizers was not getting enough supply owing to high natural gas prices and China imposed a ban on exporting fertilizers. Additionally, another factor impacting prices of bulk nitrogen is high demand due to its usage as a refrigerant in ongoing vaccination drives in Asian countries.
Europe
European market witnessed a hike in the prices of Bulk nitrogen in the fourth quarter of the year 2021 due to the intensified downstream demand from the fertilizer producing industries. This surge in demand for fertilizers was caused due to the ongoing season for sowing winter crops. Supply chain disruptions and increased shipping charges mutually halted the supply and eventually enhanced the demand for fertilizers. The demand for liquid nitrogen was further augmented due to continuing vaccination drive as liquified nitrogen is used as a refrigerant for cryopreservation of Covid-19 vaccines.
For the Quarter Ending September 2021
North America
In North America, Bulk Nitrogen market experienced an upward trajectory backed by the firm demand from several downstream segments during the third quarter. In the US, Bulk Nitrogen prices witnessed an upsurge due to its reduced availability, as a repercussion of Ida hurricane in August end. The situation consequently led to the disrupted production and supply across the region. Moreover, consistent rise in the energy prices in the international market further exerted pressure on the Bulk Nitrogen market and influenced its pricing trend throughout the quarter.
Asia
In Q3 of 2021, Bulk Nitrogen market outlook remained positive in Asia bolstered by the surge in demand from the pharmaceutical and food & beverages industries. In India, prices of Liquid Nitrogen witnessed an upward trend supported by the procurement of the product in higher volumes by the local traders due to the firm demand. Moreover, logistic issues and expensive transportation also contributed to the inflation in the prices of Bulk Nitrogen in the regional market. Besides, traders were heard transferring the cost pressure to downstream consumers to safeguard their profit margins. Hence, Ex-Taloja Bulk Nitrogen prices were assessed at USD 189.09 per MT in July.
Europe
In Europe, Bulk Nitrogen prices attained tremendous gains supported by low inventory levels amidst firm demand. Moreover, pressured stocks amplified the need for Nitrogen fertilizers globally that kept that Nitrogen market under pressure in this timeframe. In addition, Russia, announced to place export quotas on urea and nitrates, which further stressed global Nitrogen sentiments in the European region. Besides, soaring demand for Nitrogen as a refrigerant kept its market fundamentals in upward trajectory in the concerned timeframe.
For the Quarter Ending June 2021
North America
Nitrogen prices in North America climbed effectively during this quarter. Initially prices of Nitrogen remained high, due to regional shortage after the freezing fallout experienced in February. Later, further improvement in demand from the downstream fertilizers sector led to improvement in the production activities. As the supply was still low, increase in demand widened the demand and supply gap and made Nitrogen prices to rise effectively throughout the quarter. In the meantime, global demand for Nitrogen increased respectively, where the overall supply remained tight that induced buoyancy in its prices across global market.
Asia
In the Asian market, prices of Nitrogen showcased mixed sentiments, where the demand from downstream fertilizers segment remained consistent in China and Japan but remained dull in India. In the Indian market, prices of Nitrogen decreased effectively during May following the fall in demand due to unprecedented surge in COVID cases in the country. Several industrial gas manufacturers diverted their Nitrogen manufacturing towards Oxygen, as the country faced severe shortage of medical Oxygen. Under the movement restrictions in the country, demand from downstream sectors slumped, which later improved during the quarter ending. Eventually, prices of Nitrogen in India bounced back and reached USD 480.5/MT in the final week of June.
Europe
Surge in regional demand from downstream Ammonia based fertilizers, led to a plausible rise in price of upstream Nitrogen within the quarter. This rise was driven by firm offtakes from agrochemicals sectors amidst the supply shortage across the region. During April, imports of several products reduced from USA which pressured domestic manufacturers to enhance their production to satisfy the overall demand. The move eventually led to an increase in demand and prices for Nitrogen in the regional market.
For the Quarter Ending March 2021
North America
Despite of numerous efforts to regain the industrial activities, North America region faced astonishing downfall in the industrial sector during Q1 2021. Metal fabrication sector remained on low pace, due to tumbling demand from downstream sector like automobiles and constructions in various parts of North America region. Texas winter storm also halted the various plant activities across the region which reduced the demand for carrier gases and Nitrogen from agrochemical sector.
Asia
During Q1 2021, Asia region sustained its fair recovery in industrial activities with respect to the prior quarter. Improved production and increased availability halted the price acceleration of Bulk Nitrogen and it thus experienced a price downfall across the region. The demand from metal fabrications remained low in several APAC countries, which led to fall in demand for Nitrogen in metal fabrication sector. Similarly, in India, the automotive sector was bearing losses during Q1 2021, although it showed marginal improvement during January. Due to rapid rise in COVID 19 cases and partial lockdowns implements in various states of India, the demand for bulk Nitrogen failed to sustain its pace. Likewise, in Chinese market, metal fabrication sector and automotive sector remained low and hence the ample availability reduced the prices of Bulk Nitrogen.
Europe
During Q1 2021, sales from metal manufacturing and agrochemicals sectors remained stable with respect to Q4 2020. Although, vaccination drives across the region enhanced the market sentiments, but it was not enough to lay a significant impact upon the market dynamics. However, shortage of shipping containers during Q1 and Suez Canal blockage during March ending, increased the prices of Nitrogen and its derivative products.
For the Quarter Ending December 2020
North America
Despite of experiencing steady growth in various industrial activities, the sales to the industrial sectors like metal fabrication and automotive remained low. However, in comparison to the previous year the position of metal manufacturing industry in the region was seemed to improve. With gradual revival in the metal fabrication industry towards the end of Q4, demand for bulk Nitrogen from gas blanketing and laser cutting segments also improved. Nucor, a leading steel manufacturer in USA revealed that their overall demand for bulk gases increased by around 7% from Q3 to Q4, thereby indicating towards a positive demand for industrial Nitrogen.
Asia
During Q4 2020, the overall recovery of Asia was deemed as good, and industries were getting a boost to come on track again. Air Liquide, one of the leading bulk gas suppliers across the world, revealed that they have experienced maximum growth in sales from China of around 10% due to the recovery observed in the metal fabrication sector and automotive in Q4. In addition, 10% growth was witnessed in carrier gases and advance materials sector which positively impacted the demand for Nitrogen. Despite prospects for pick-up in demand from the country’s steel industry, liquid Nitrogen pricing in India was averaged around USD 535 per tonne during the quarter ending December 2020.
Europe
Sales of metal manufacturing & fabrication materials showed an appreciable revival during Q4 2020, which caused a direct impact on the demand of Nitrogen in Europe. Air Liquide experienced a strong demand for liquid gases from the eastern European region, specially from Poland and Russia. Thus, in comparison to Q4 2019, the overall prices of Liquid Nitrogen surged by 1.7 per cent in the same period this year.
