Affected by multiple factors such as rising prices of coal and synthetic ammonia, sluggish transport of raw materials and products due to snow disasters, and reduced market resources due to production cuts, this year's concentrated nitric acid market has come out of an unprecedented market: the market is not short off-season, and it has experienced unprecedented sales. situation. It is expected that in March and April, the concentrated nitric acid market will continue this trend under the support of upward momentum such as high production costs.
In February, the mainstream price of concentrated nitric acid rose from 1,350 to 1,400 yuan/ton at the end of 2007 to 1,520 to 1,580 yuan/ton. Although domestic resources rapidly expanded in late February, the concentrated nitric acid market faced downward pressure on prices for a short period of time, but with the rapid rise in the domestic price of synthetic ammonia and the once again reduced production of concentrated nitric acid plants, the market price of nitric acid once again picked up. At present, the average ex-factory prices have risen to 1600 to 1,700 yuan/tonne.
The concentrated season of nitric acid in the off-season is characterized by high season, mainly due to the increase in production costs. China's concentrated nitric acid production enterprises mainly use coal as raw materials, so the rise in coal prices directly boosted the cost of concentrated nitric acid. At present, with the recovery of production and living order in the affected areas and the advent of the spring plowing season, domestic coal supply will remain tight and prices will remain high.
Since November last year, with the continuous rise in the prices of domestic coal and urea, the supply and demand of synthetic ammonia, an important raw material for concentrated nitric acid production, has become inconsistent and prices have risen sharply. On the eve of the Spring Festival, the price of synthetic ammonia dropped slightly but quickly rebounded after the Spring Festival. The domestic mainstream price of synthetic ammonia has risen from RMB 2,700-2,800/ton in late December last year to RMB 3,150-3,200/ton, and there is a possibility of further rise.
Platinum network is the second largest cost factor behind concentrated ammonia production in the production of concentrated nitric acid. Due to limited platinum resources, the price is higher than one year a year. In March, the platinum price in the domestic market reached 505 to 507 yuan/g, and the price of antimony rose to 2390 to 2410 yuan/g. At the same time, domestic steel prices have also risen sharply. The price increase of major steel products has reached as high as 20%, which has led to increased production and maintenance costs for concentrated nitric acid equipment.
The increase in the cost of concentrated nitric acid does not stop there. According to the latest data released by the National Bureau of Statistics on February 28, in January, the purchase price of raw materials and fuels increased by 8.9%, the ex-factory price of production materials rose by 6.5%, and the purchase price of chemical raw materials increased by 3.8%. In addition, since the second half of last year, the entire social price index has continued to rise, and the prices of various consumer goods and basic household items have skyrocketed. This has also caused pressure on labor costs for nitric acid companies to continue to increase. The information released by the National Bureau of Statistics on March 11 showed that in February, the national consumer price level rose by 8.7% year-on-year, accumulating from January to February, and the total consumer price price rose by 7.9% year-on-year.
In addition, with the continuous increase in the interest rate of China’s banks, a large number of businesses that pay for purchases in the process of purchase and sale of concentrated nitric acid will inevitably encounter price pressures caused by rising interest rates. According to the rate of increase in domestic interest rates in one year, the difference between the interest rate of concentrated nitric acid acceptance and spot exchange needs to be increased from RMB 20 to RMB 30/t to RMB 50 to RMB 60/t in order to make up for the increasing financial costs of the company.

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