Chinese Nitric Acid Market Declined While Liquid Ammonia Price Increased

Market Review: The Chinese concentrated nitric acid market fluctuated down this week. Prices went down by RMB 20-40/mt. Mainstream dealing prices in Shandong and Henan declined by RMB 10-20/mt. The supply was not high in the market and the declines were limited. In Anhui, Jiangsu and Zhejiang, prices declined by RMB 25-50/mt. The supply was ample. Up to March 22, 2018, mainstream negotiation prices for 98% nitric acid were around RMB 1,577/mt, down 1.31% week on week and up 7.06% year on year. According to ECHEMI, liquid ammonia prices moved up, which increased the production cost of nitric acid. But the demand from aniline, TDI markets was modest. Producers’ inventories were high and the bearish sentiments were high in the market.    

Units Running Status: Units in Hualu Hengsheng, Shandong Haihua, Dahua, Hongda Chemical and PetroChina Jilin Petrochemical were shut. The overall operating rate was in the range of 40%-50%.

Forecast: The Chinese nitric acid market will move marginally next week. Prices may slide by RMB 20-30/mt. The wait-and-see sentiments will be thick. Prices of liquid ammonia will be at highs and nitric acid producers will see production cost pressure. It is predicted that the mainstream dealing prices for 98% nitric acid will be in the range of RMB 1,500-1,550/mt.