The following blog covers the industrial overview of nitrogen. It covers the market applications, regional players and price analysis of the gas, giving the industry participants an in-depth analysis of the commodity.
Nitrogen: What is it?
Nitrogen (N) is a non-metallic element belonging to group 15 of the periodic table. It appears to be a colourless gas with no odour or taste. The gas is the seventh element in the periodic table with the atomic number 7, an atomic weight of 14.0067 and a density of (1 atm, 0° C)1.2506 grams/litre. The melting and boiling point of the gas is −209.86 °C (−345.8 °F) and −195.8 °C (−320.4 °F).
Market Applications of Nitrogen Gas
Nitrogen being an inert gas is ideal for a wide spectrum of end-user applications employed in several industries, including chemical manufacturing, processing, handling, and shipping. Since it is a non-reactive gas, it is perfect for blanketing and is usually employed as a purging gas. It finds use in removing impurities from process streams via processes like stripping and sparging, making it an excellent choice for the protection of valuable products against harmful contaminants while enabling safe usage and storage of flammable compounds. Other applications of the product include:
Food Industry
Nitrogen gas is able to provide an atmosphere that is unreactive and thus finds use in food preservation for maintaining the freshness of packaged or bulk foods preventing rancidity and oxidative damage to the products.
Light Bulbs Industry
Technically, bulbs cannot be filled with air, so they must be filled with a non-reactive gas such as nitrogen.
Fire Suppression Systems
Nitrogen is also used for fire suppression which is accomplished by minimising the level of oxygen concentration which will result in fire extinguishing.
Stainless Steel Manufacturing
In many cases, nitrogen can be added to steel in the course of steelmaking and processes like melting, ladle processing and casting operations as the gas impacts the hardness, formability, and strain ageing.
Tire Filling Systems
Nitrogen is added to inflate the tires of race cars and aircraft, which lowers the problems induced by the oxygen and moisture in natural air.
Aircraft Fuel Systems
Nitrogen is added to the fuel systems of aircraft in order to lower fire hazards.
Chemical Analysis And Chemical Industry
Nitrogen is usually utilised in chemical analysis during sample preparation and is used to concentrate and lower the volume of liquid samples. As it is a vital gas used in the chemical industry, it finds use in producing products such as dyes, fertilisers, nylon, nitric acid, and explosives.
Pressurised Beer Kegs
Nitrogen also has an application as a replacement that is used to pressurise the kegs of certain beers, as nitrogen-charged beers can be packaged in bottles and cans.
Nitrogen Production Process Study
Nitrogen is produced from the air via the fractional distillation process, which uses distillation columns under cryogenic conditions converting liquid air into nitrogen and giving out Oxygen as a by-product.
Key Market Players in the Nitrogen Industry
- Air Liquide
- Air Products Inc.
- Bombay Oxygen Investments Ltd
- Buzwair Industrial Gases Factories
- Cryomech Inc.
- Gulf Cryo
- Linde
- MVS Engineering Pvt. Ltd
Nitrogen Price Trend Breakdown
North America
Recently the Nitrogen market sentiments see-sawed in North America due to strength in demand and production cost. At first, the prices saw sluggish demand for Nitrogen from the downstream fertiliser and food and beverages sector. Suppliers saw routine inquiries as a ripple effect, and the definitive prices were stabilised. However, near the end of the quarter, the prices in the market fell sharply due to the disturbance caused by the festive holidays and storm Elliot in the regional market’s supply chain. Similarly, the product’s demand from the agricultural sector dropped paired with the food and beverages sector. The country’s unemployment rate settled near the quarter end, and the looming recession fears in the country shrouded the US.
Asia Pacific
At present, Nitrogen prices in the Asia-Pacific market dropped by 7% on the back of the product’s falling demand. As per the official statement by the government of India, the country owned a sufficient amount of fertilizer stock in order to serve the regional market for the rabi season, uniformly influencing the Nitrogen market’s final price. The product’s demand from the pharmaceutical, as well as food & beverages industries stayed moderate in the market in Asia. In December, the Wholesale price index (WPI) fluctuated and dropped a little throughout the quarter. The Indian market’s manufacturing output also leaned towards the end of the quarter, and the demand outlook was also extemporized.
Europe
The Nitrogen prices displayed a downward trend in the market in Europe. Europe’s capacity to produce nitrogen-based fertilizer was lowered due to some big businesses cutting their outputs as a consequence of rising energy costs and dwindling demand strength. After the disruption in the natural gas supply, domestic inflation limited the manufacturer’s capacity to generate Nitrogen. Furthermore, the product’s demand from the fertilizer market stayed modest. The general market was hampered by the growing interest rates and wage costs while also seeing a drop in chemical industries and output capacity.
Recent Development in the Industry
- Nitrogen is among the most widely available elements on the planet and is crucial for many end-uses. However, nitrogen in excessive amounts produced from using synthetic fertilizers, discharging wastewater or fossil fuel combustion can harm the land, air and water, which will deplete the ozone layer. On 17th January, a discussion will take place supported by UNEP, where officials worldwide will discuss how nations should better manage nitrogen.
The most pivotal point businesses require a thorough detail of the commodity they are catering to. The commodity’s knowledge encompassing the price trends, economic undercurrent, socio-political sentiments, buyers’ intent, demand-supply equation, inventories, the latest methods of production and the most convenient and economical way of execution are some of the things that hold the utmost importance in view of businesses. Hence, experts and industry leaders always suggest following the guided approach and making informed decisions while planning the procurement and supply chain of various commodities and chemicals.
