Polypropylene Pall Rings,Plastic Pall Ring,Random Packing,Pall Ring Wuxi Qijing Machinery Technology Co., Ltd. , https://www.sinombbrmedia.com
Concentrated nitric acid market continues to consolidate
In August, the domestic concentrated nitric acid market remained relatively stable, with no significant price increases expected. However, the market is anticipated to continue experiencing consolidation and fluctuations in September.
During August, several major nitric acid producers were forced to shut down for maintenance, which had a noticeable impact on supply. One of the largest concentrated nitric acid manufacturers in China, Anhui Huaihua Group Co., Ltd., saw its third production line operational, boosting monthly output to over 30,000 tons—accounting for 22% of the national market. The company’s shutdown for maintenance caused a sharp drop in supply, creating short-term volatility in prices. Additionally, extreme heat this summer and lower-than-expected plant output also contributed to rising prices. Some industry players anticipated a new price surge in August, with some Shandong-based companies preparing for a potential market upturn.
Notably, several key companies scheduled maintenance during the month: Anhui Huaihua Group started early on August 16th, PetroChina Lanzhou Petrochemical Company conducted a one-month safety inspection in early August, Hubei Jinyuan Chemical Industry shut down for a week on August 10th, Liuzhou Chemical reduced output by 30% for a week, and Shandong Huayang Pesticide Chemicals suspended operations for about a week in late August.
Despite the drop in supply, many nitric acid producers did not face significant pressure in sourcing materials, and the anticipated market improvement did not materialize. Analysts identified three main reasons for this unexpected outcome.
First, downstream demand remains weak due to underutilized aniline plants. For example, Jiangsu Shuangliang Group’s 50,000-ton/year aniline plant, PetroChina Lanzhou’s 100,000-ton/year facility, and Jilin Petrochemical’s 136,000-ton/year plant have not driven strong demand for nitric acid.
Second, the scale of concentrated nitric acid production has grown rapidly. While many companies halted operations for maintenance in August, most only stopped for a week. In June, national output rose by 5.7%, and by July, it surged to 18.1%. New capacity additions, such as Anhui Huatai and Anhui Huaihua, have further increased supply, putting downward pressure on prices and dampening supplier confidence.
Third, last year’s market was distorted by excessively high prices and inflated profits, leading to overcapacity. This year’s price decline reflects the natural correction of a saturated market. After months of adjustment, the market bottomed out in July and August, and analysts expect continued consolidation into September.
Industry insiders suggest that until the market undergoes multiple rounds of shakeouts, eliminating inefficient producers, the concentrated nitric acid sector will not return to a healthy state. Only through these adjustments can the market restore its true value and stability.