Global Nitric Acid Market is the common name for Aqua Regia and spirit of niter with the chemical formula HNO3. It is a highly corrosive and strongly acidic mineral acid. It is a tasteless, colorless liquor that solubilizes easily in water and has a very strong stink in air. It is mainly used in the manufacture of fertilizers, nitro compounds, nylon intermediates, and many other organic chemical substances. There also is its use in metal etching, pickling and cleaning, of the metal with copper, silver, and iron being also examples of metals that dissolve. The ammonium nitrate is one of the key stock materials used in the production of rocket propellants, and inorganic fertilizers. Therefore, nitric acid is so important in the industry of manufacturing. Furthermore, it functions as substances in laboratory experiments and chemical synthesis reactions due to its strong oxidizing attributes. However, its perpetual danger to metal corrosion and hazards to human life require that special precautions be taken during use and storage. The Asia-Pacific region stands as the largest exporter in the carbon dioxide in the global nitric acid market, especially China which plays a leading role. The large-scale of industrial activities in China such as its manufacturing industries, agriculture sector, and chemical production industries have been driving up the demand for the nitric acid.

Player Names

• Yara (Norway)
• Nutrien Ltd. (Canada)
• BASF SE (Germany)
• 3M (United States)
• Dow (United States)
• DuPont (United States)
• LSB INDUSTRIES (United States)
• Sika AG (Switzerland)
• CF Fertilisers (United Kingdom)
• Innospec (United States)
• ADEKA CORPORATION (Japan)
• PMC Specialties Group (United States)
• Afton Chemical (United States)
• The Lubrizol Corporation (United States)
• Clariant (Switzerland)
• LANXESS (Germany)
• Mayzo, Inc. (United States)
• Solvay (Belgium)
• Akzo Nobel N.V. (Netherlands)
• Arkema (France)
• Eastman Chemical Company (United States)

Segment Analysis

1. By Concentration

• Dilute Nitric Acid (68%)
• Concentrated Nitric Acid (69%-71%)

2. By Application

• Fertilizers
• Ammonium Nitrate
• Nitrobenzene
• Toluene Di-isocynate
• Adipic Acid
• Nitro Chlorobenzene
• Other

Market Drivers

Nitric acid is a crucial raw material in the manufacture of ammonium nitrate, a commonly applied nitrogen fertilizer. The demand for nitric acid is correspondingly and highly dependent on the relevance of, and the need to mechanize, agricultural means so as to ensure the output and the supply of food to feed the increasing citizens of the world. More agricultural activities, such as expanding arable land, changing the diet habit and government lending for the enhancement of productivity of, not only lead to the demand of but these are underlying factors as well. The nitric acid is a universal reagent that is used for the production of multiple compounds listed such as ammonium nitrate, nitrobenzene, adipic acid, and nitrocellulose. The development of chemical industries such as pharmaceuticals specialty, explosives, dyes, polymers, and plastics relies on nitric acid as a vital intermediate compound. The chemical sector would expand due to the rise in the economic growth, the increase of the industrialization, and the appearance of the new technologies, as a result, nitric acid consumption would increase. Nitric acid is employed in the production of automotive catalytic converters that are obligated for vehicles with the primary objective of mitigating the harmful gases emitted. The auto industry has grown boosted by sales in the passenger car market, cleaner standards and more stringent emission limits coupled with cleaner technologies, which has put demand on nitric acid for catalytic converter production on the rise.

Market Trends

Environmental challenges and strict regulations are forcing filmmakers to take Eco-hydraulic production methods in manufacturing nitric acid. Technology such as the catalytic oxidation of ammonia (Ostwald process) and nitric oxide removal (hotspot) processes will be developed to reduce the emission of NOx barrier produced in the traditional nitric acid manufacturing. Nitration acids help in processing metals through petrification and passivation in steel making, etching of metals for electronics manufacturing and in production of metal nitrates for catalysis and metal finishing purposes. The industries such as auto-mobile, electronic, aero-space, and construction are expanding their product lines in the direction of greater concentrations of nitric acid for metal processes. Nitro acid specifically is applied in production of pharmaceuticals to make nitroglycerin, a substance that is used to make cardiovascular drugs. Besides, nitric acid is also used in the production of several useful intermediary compounds and drug APIs that explains the market stemming from healthcare sector.

Market Challenges

Nitric acid is mainly manufactured via catalytic oxidation of ammonia, where ammonia is considered a fundamental raw material. There are changes in the ammonia price and availability, caused by features such as natural gas prices change (because with ammonia produce, all are almost using the same amount of ammonia as a fuel) and also by agronomics sector supply-demand situation (because of ammonia fertilizer application for plant growth). The energy intensiveness of nitric acid production means that it is a process with big energy demands incurring for ammonia synthesis, ammonia oxidation, and Nitrogenic acid concentration processes. Changes in the energy pricing environments, in particular, natural gas prices (as natural gas is the main fuel for the production of nitric acid), may influence production expenses and loss to nitric acid production companies. The nitric acid industry is facing the challenge of rival products and losses of position in the different applications of its products. For example, similar to the market for nitric acid exists a cut-throat competition with other nitrogen-based fertilizers such as urea, ammonium nitrate. Nitric acid has some competitors within the chemical industry, namely some other acids and certain chemicals used in diverse areas such as nitrocellulose and nylon production.

Market Opportunities

Nitric acid is widely applied in different industrial processes, including to explosives, nylon, polyurethane, and to others’ special chemical production. The most prominent enterprises in the expanding industrial sectors, contribute to the fast-growing nitric acid consumption. However, nitric acid serves in metal extraction and processing notably gold, silver, platinum etc. Metal mining firms’ growth, fueled by a surge in metal demand in road and building construction, electronics manufacturing, and renewable energy technologies (e.g., solar and wind power), requires nitric acid suppliers that primarily serve this sector. Infrastructure jobs that include constructing, transporting and utilities must be environment-friendly and are dependent on acid-based products. When a country commits to develop its infrastructure to support both economic progress and urbanization the demand of construction materials become fundamental as efficient growth is expected to increase demand for) plastics and such chemicals drawn from acid nitric.

Regulatory Factors

Nitric acid belongs to hazardous chemicals class, and consequently its production, transportation, storage and handling are carried under the chemical safety regulation. The main aim of chemical safety regulation is to prevent accidents, releases, and spills associated with chemicals use. Among several regulatory frameworks such as the Occupational Safety and Health Administration (OSHA) Hazard Communication Standard in the United States or the European Union’s Classification, Labelling and Packaging (CLP) Regulation, the manufacturers and suppliers are required to research the connection between nitric acid and hazards and warn the users who work directly and down the line with nitric acid through safety data sheets (SDS) and label. Nitric acid is categorized as a hazmaterial, and its transportation conforms to the rules on packaging, labeling, and methods of safe handling to avoid spills and environmental pollution during the transit. Authorities such as the US Department of Transportation (DOT), which is responsible for the land-based transport, and the International Maritime Dangerous Goods (IMDG) Code, acting for the sea transport, establish regulations for the safe non-toxic nitric acid transport by land, rail, air, and sea.

Recent Industry Insights

• In January 2023 Grupa Azoty doubled its nitric acid production capacity with the launch of a new facility in Tarnów. This new production facility will increase the company’s capacity to 40,000 tons annually and will expand the manufacturing line for above 98% concentrated nitric acid.
• In June 2022- Nutrien Ag Solutions increasing its fertilizer production capability. This enables the company to respond to changes in global energy, agriculture, and fertilizer markets.

Recent Merger Acquisitions

• In July 2022 Nutrien Ag Solutions agreed to the acquisition of Casa do Adubo S.A., a Brazil-based company. This acquisition will include 39 retail locations and 10 distribution centers of the brand Casa do Adubo and Agrodistribuidor Casal, respectively. The agreement supports Nutrien’s Retail growth strategy in Brazil and is expected to increase its sales by USD 400 million.

Competitive Landscape

The Global Nitric Acid Market is competitive and concentrated with major key players such as CF Industries Holdings, Inc., BASF SE, OCI Nitrogen, ADEKA CORPORATION, PMC Specialties Group. The strategic players of nitric acid industry compete mainly by giving the highest quality product, competitive pricing, distribution networks, customer services, environmental efforts, and scope to serve global markets. All are intended to distinguish themselves form others by producing quality products that are competitively priced and are available in the market through an efficient distribution network and outstanding customer service. Moreover, environmental care and sustainability which is the core goal of green economy enhance their reputations and attract responsible consumers.