Nitric Acid Price Trend Witnessed Notable Fluctuation during Q4’2023

The European market experienced a surge in the price trend for nitric acid during the month of November 2023. The increase was seen due to the lack of availability of vital feedstock in the domestic market. The increase in the prices of ammonia, one of the crucial raw materials, contributed to the higher production costs for nitric acid. On the other hand, the prices of nitric acid in Northern America declined during November 2023. The reduction was observed due to the declining demand for the compound in both domestic as well as regional markets.

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However, throughout November, the market experienced a significant growth in the costs of nitric acid, which was majorly driven by an increase in the spot prices of ammonia. Additionally, a low availability of raw materials for production affected the rise in the price trends.

A low import facility of raw materials in the European market, accompanied by the declining export practice from the USA, resulted in the shortage of raw materials for nitric acid in the domestic chemical market. Further, the ongoing transportation issues faced at the Panama Canal added more complexities to the existing situation in the European market. As a result of the shipment issues, the transportation costs increased, ultimately affecting the flow of the domestic chemical market.

Pumped up with the low shipment facility and unavailability of the raw material caused uncertainty among the producers, which led to a decline in exports from the USA to Europe. However, amid the lowering rate of raw material supplies, the constant demand from the downstream industries allowed an upward cost pressure on the price trends. All of the ongoing issues have also impacted the regional fertilizers market, creating a solid support base for the rise in nitric acid prices.

On the other hand, the prices went down in the USA. The demand remained stable throughout that period, marking a peak fertilizer season within the country. However, the demand from the downstream industries reduced, creating a downward pressure on nitric acid prices. In addition to that, the issues caused by the Panama Canal shipping route caused an accumulation of inventories within the country. The stockpiling situation, along with the reduction in the demand altogether, contributed to the decrease in the rates of nitric acid in the US market.

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According to Procurement Resource, the nitric acid market remained unstable in Europe and the USA throughout November 2023. The surge in the European market and a decline in the USA as a result of unstable demand-supply rate was constant. The market is expected to remain undulating due to the ongoing shipment issues along with the inconsistent price trends of the feedstocks in the upcoming months.