In December 2024, Nitric Acid prices displayed a mixed trend across global markets, influenced by regional economic conditions, supply-demand imbalances, and external market dynamics. While China experienced declining prices due to persistent oversupply and subdued demand, Germany saw strong upward pricing pressure driven by rising production costs and logistical challenges. These regional disparities underscored the varying influences shaping the global Nitric Acid market.

In China, Nitric Acid prices declined during December as the market struggled with persistent oversupply and weak downstream demand. Manufacturing activity expanded, and raw material inventories, including ammonia, improved modestly. However, oversupply from previous months remained a challenge, with inventories at elevated levels. Downstream demand from fertilizers and industrial applications was muted, largely driven by seasonal slowdowns, and reduced agricultural activity as the Spring Festival approached. Factories faced pressure to attract orders, resorting to price reductions that had limited success in stimulating demand. With fertilizer plants beginning to shut down for holidays and agricultural production tapering off, Nitric Acid sales volumes continued to decline. These factors created a steady downward trajectory for prices, which is expected to persist into early 2025.

In Germany, Nitric Acid prices surged sharply in December, driven by soaring production costs and constrained supply. European fertilizer manufacturers faced significant cost pressures due to natural gas prices and a weak euro that inflated the cost of imports. These factors caused nitrogen fertilizer prices, including Nitric Acid, to rise across the region. Compounding this were logistical challenges, including delayed deliveries from key suppliers in the Middle East, Asia, and Africa. Farmer demand remained weak, as low grain prices, reduced incomes, and high inventories of unsold agricultural products limited purchasing activity. However, traders and wholesalers anticipate a shift in demand dynamics as spring approaches, with expectations of stronger purchasing activity to replenish depleted stocks.

Looking ahead, regional disparities will likely continue to shape the global Nitric Acid market. In China, high inventories and limited export opportunities are expected to maintain downward pressure on Nitric Acid prices, although potential supply adjustments in response to weak demand may provide marginal relief. In Europe, the spring season could bring a resurgence in fertilizer demand, particularly as farmers and traders seek to restock inventories. This anticipated demand uptick, coupled with ongoing cost pressures on European producers, could support further price increases. Globally, the Nitric Acid market remains poised for a dynamic start to 2025, shaped by a complex interplay of supply, demand, and economic factors.