Did the nitric acid company save itself by reducing its production?

"Currently, the market price of concentrated nitric acid per ton has increased by 100 to 120 yuan," said Sun Lihui, general manager of Shandong Huayang Deere Chemical Co., Ltd., in late last year. He noted that some nitric acid producers had limited their output to survive amid tough conditions. Producers explained that cutting production was a necessary step due to overcapacity and widespread losses in recent years. From April 2004, the price of concentrated nitric acid surged sharply, reaching a peak of 2,100 yuan per ton in 2005, with an average monthly increase of 100 yuan. This price boom triggered a wave of new investments and expansion. By 2005, China's total output of concentrated nitric acid reached 1.57 million tons, up 21% year-on-year. In 2006, new capacity added 1.17 million tons, which accounted for about two-thirds of existing capacity, marking the highest expansion rate in history. With more units coming online in 2007, total capacity approached 3 million tons. However, after two years of high prices and profits, the market quickly cooled. By 2006, prices fell to around 1,300 yuan per ton, and remained stable in 2007 without showing signs of recovery. At the same time, rising costs—such as coal, electricity, rail freight, and other raw materials—further squeezed profit margins. By 2007, 80% of concentrated nitric acid companies were operating at a loss, while the rest barely managed to stay afloat. As a result, many companies engaged in price-cutting wars, pushing market prices close to production costs. To protect themselves, several domestic firms reduced output, which temporarily stabilized the market. According to reports, national output of concentrated nitric acid dropped by 10% to 15% between November and December 2007, and prices rose by 100 to 120 yuan per ton in January and February 2008. Some believed that reducing production was an effective strategy for self-rescue. However, industry experts argued that this approach was only a short-term fix. They emphasized that long-term survival required product diversification and industrial chain extension. For example, Shandong Huayang Deere Chemical Co., Ltd. built a vertical integration from nitric acid to nitrobenzene, aniline, and rubber antioxidants, allowing them to better manage market fluctuations. Additionally, rising input costs played a key role in the recent price increases. Ammonia prices, a critical raw material, climbed from 2,700 to 3,200 yuan per ton due to supply disruptions caused by snow disasters. Platinum and antimony prices also surged, while steel prices rose by as much as 20%. These factors contributed significantly to the overall cost pressure on producers. Sun Lihui warned that the root problem of overcapacity had not been fully addressed. Once demand rebounded, excess capacity would likely resume production, leading to another price drop. Over the past five years, China’s concentrated nitric acid output has grown by 18% to 20% annually. This year, capacity may exceed 3 million tons. Experts from the National Chemical Nitrate and Nitrate Technical Cooperation Network pointed out that the main issue for many producers is their reliance on a single product. When profits fall, they can only cut or stop production, which puts immense pressure on their survival. For instance, in Shandong, one of the country’s largest nitric acid-producing provinces, only one of seven major companies had aniline facilities, while others exported concentrated nitric acid, making them vulnerable to price drops. To overcome these challenges, companies should focus on expanding their industrial chains and adjusting their product structures. For example, Shandong Union Chemicals launched a 110,000-ton annual output of nitro compound fertilizer, which helped diversify its offerings and reduce market risks. Experts advised companies to explore alternative uses of nitric acid, such as in dilute form for other applications, and to choose development paths that suit their capabilities. In conclusion, while reducing production may offer temporary relief, it is not a sustainable solution. Companies must adapt and innovate to survive in the long term.

Overall Construction Of Medical Engineering

Jilin HaoChen cleaning Engineering Technology Co., Ltd Design, construction, commissioning, maintenance and technical consulting services for air purification project, clean room installation project, central air conditioning installation project, building decoration project, electromechanical equipment installation project, building intellectualization project, building curtain wall project, steel structural engineering, communication project; Sales and installation of medical air conditioning, central air conditioning, electromechanical equipment, laboratory (laboratory) equipment, pharmaceutical industry equipment, air purification products, building materials, and medical equipment


We are a technological innovation enterprise focusing on the pharmaceutical purification engineering industry. The enterprise has a superb purification engineering technical team and excellent construction force. The company has always pursued the service tenet of "safety first, quality-oriented, customer first and technology first". Many representative air purification projects have been established in Jilin Province, Heilongjiang Province, Liaoning Province and Inner Mongolia Autonomous Region. With a registered capital of 5.8 million yuan, the company has grade II qualification for professional contracting of Building Decoration Engineering; Grade II qualification for professional contracting of building electromechanical installation engineering.


Overall Construction Of Medical Engineering,Negative Pressure Isolation Ward,High Fever Emergency Room,Prefabricated Laboratory

Jilin HaoChen cleaning Engineering Technology Co., Ltd , https://www.hcaircare.com