"By the end of 2009, China’s annual production capacity of concentrated nitric acid was about 2.50 million tons. Meanwhile, there were over 30 concentrated nitric acid producers in China, of which 14 producers possess the annual production capacity of 100,000 tons or above.
The global financial crisis in 2008 led to the depression of the whole chemical market in China. At the beginning of 2009, a great many enterprises stopped the nitric acid production, resulting in the reduction of market resources. During the downturn of the chemical sector, Chinese nitric acid market took the initiative to raise the price and enhance promotion to whip up the situation for almost half a year. Though the price fluctuated a little within the period, the market prosperity was maintained to July 2009.
In 2009-2010, Chinese newly added production capacity of concentrated nitric acid was about 300,000 tons. However, with the release of the Emission Standard of Pollutants for Nitric Acid Industry at the end of 2009, the production devices of nitric acid by normal pressure method, which contribute 11% to the aggregate production capacity, will be stopped due to the failure in meeting the emission standard. Thus, the production capacity of concentrated nitric acid in 2010 will be the same as that in 2009, that is, 2.50 million tons. Besides, in accordance with this standard, other unqualified production devices also need reconstruction. The reconstruction and overhaul of devices will lead to the further reduction of the actual supply in China. As the nitric acid is a corrosive strong acid that cannot be stored easily, the import and export volumes are small. Thus, the production basically equals the domestic consumption.
In 2009, the production of concentrated nitric acid in China totaled about 2.06 million tons, rising by 10.70% YOY.
In 2010, the downstream demand of Chinese nitric acid industry maintains growth, likely to generate a new round prosperity cycle. In China, nitric acid is mainly applied in the chemical industry, which takes up over 60% of the total demand. Sub-products like aniline, TDI, MDI and dyes have higher demand for nitric acid. The nitric acid demand is 25%-30% from aniline and 15% from TDI. As Chinese economy gradually recovers and the production capacity of TDI & MDI are put into production intensively in 2009-2010, the downstream demand of nitric acid will assume fast growth. However, due to the energy saving and emission reduction policy, Chinese nitric acid production capacity in 2010 will be almost the same as that in 2009. Thus, there will probably be short supply in Chinese nitric acid market and the price is likely to increase.
Through this report, readers can acquire more information:
-Status quo of Chinese nitric acid industry
-Production of Chinese nitric acid industry
-Demand in Chinese nitric acid market
-Price trend of nitric acid in China
-Competition on Chinese nitric acid market
-Major enterprises in Chinese nitric acid industry and their operations
-Prediction on the demand in Chinese nitric acid market
-Contacts of major nitric acid producers in China
Following persons are recommended to buy this report:
-Nitric acid producers
-Nitric acid traders
-Downstream enterprises of nitric acid
-Research institutes concerning Chinese nitric acid industry
-Investors concerning Chinese nitric acid industry
-Others concerning Chinese nitric acid industry
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