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Basic Issues in buying nitrogen

Author : David C Skul

Nitrogen is used in a wide variety of activities and its demands
on the market are rising every day. Medical facilities,
laboratories, specialized industries, agriculture, need
different nitrogen based products to fulfill their goals. In
some cases, consumers buy nitrogen in liquid or pure, gaseous
state. For instance, while farmers buy nitrogen fertilizers to
enhance food production, medical facilities buy nitrogen in
gaseous state in order to produce medicines or to preserve
organisms that require special conditions. Medical facilities
also buy nitrogen in liquid state for performing surgeries.

Beer factories and various branches of the food industry also
buy nitrogen in large quantities to sustain their activity.

Nitrogen prices fluctuate a lot and in these conditions prices
tend to change more quickly on the world market, as supplies are
limited. Therefore, consumers find themselves under a lot of
pressure when confronted with these issues.

Although there is no stampede to buy nitrogen, merchants and
salesmen are anxious to ensure that regular early buyers are
covered.

Because of the high volatility of raw material prices -
particularly gas - manufacturers are not keen to commit.

In autumn, gas prices start to move from a summer low towards
the winter peak. Buying nitrogen in the winter season is very
difficult, as nitrogen resources become more expensive and
scarce.

Importers are also playing a waiting game, until prospects for
the spring price become clearer. In given conditions, most
cargoes are expected before Christmas and availability decreases
after this date. Because of these issues, importers need to
consider enhancing storage space and buying nitrogen in larger
quantities when available.

In autumn, farmers are more preoccupied with harvest than with
buying nitrogen, as the size and quality of planting will be the
next indicators for the coming season's nitrogen market.
Nitrogen prices and availability are mostly set by the needs of
agriculture. Therefore, suppliers take in consideration previous
nitrogen requests before deciding upon the next offer.

Buying nitrogen is not easy and while demands are increasing,
suppliers don't keep up with the actual needs on the world
market in present.


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