In 2006, the nitric acid output of China amounted to 1.8178 million tons, up 12.6% year-on-year. Although declining by 11.4% over 2005, the growth rate still remained fast, and the import, export and apparent consumption respectively reached 31.2 thousand tons, 12 thousand tons and 1837 thousand tons, indicating a vigorous downstream demand.

Since Jan 2007, affected by the favorable factor that downstream nitric acid consumption increased stably, the industry maintained a rapid growing momentum. The accumulated nitric acid output in the first quarter of 2007 reached 475.4 thousand tons, up 14.35% from a year earlier.

By the end of 2005, the concentrated nitric acid production capacity of China had totaled up to about 2.2 million tons and, the production capacity increased by 580 thousand tons in 2006, up 26.3% year-on-year. In the first quarter of 2007, the newly-increased production capacity amounted to 350 thousand tons. In addition, the 100,000 t/a equipments and other projects of Henan Xinxiang Yongchang Chemical Co., Ltd. will be put into operation, implying that in 2006-2007, the newly-built production capacity of nitric acid industry will exceed 1 million tons and, by the end of 2007, the gross production capacity of the industry will surpass 3.2 million tons.

Considering from the development trend of China nitric acid industry, the excessive growth of production capacity in 2006 has ushered in the adverse factors that influence sound industry development. In the first half of 2006, the remarkable price hike of synthetic ammonia, raw coal, electric power, railway transport and varied auxiliary materials, as well as the largely increased cost of self-sustaining tanker alteration and safety assessment caused by railway speedup, led to the great cost rising of concentrated nitric acid production. Meanwhile, due to the price reduction of concentrated nitric acid and the nose-diving industry profit, many enterprises had to reduce or even stop the production, which resulted in a wide-range fluctuation in market supply and unstable prices.

In 2007, thanks to the vigorous market demand, the nitric acid price has stopped decreasing and remained stable, and has been on a continuous rise since May, of which the concentrated nitric acid (98%) in east China ascended from RMB 2300/ ton in the end of Apr to RMB 2350/ ton in early May. However, the high price will place a premium on the production recovery of nitric acid, which will increase the supply and cause price fluctuation. Generally speaking, the excessive growth in production capacity will still act as the unendurable pressure of nitric acid industry.

2. Analysis on China nitric acid market
2.1 Output of nitric acid
2.1.1 Gross output of China in 2006
2.1.2 Main production regions in 2006
2.1.3 Major enterprises in 2006
2.1.4 Estimated nitric acid output of China in 2007-2010
2.2 Nitric acid consumption of China
2.2.1 Regional structure of China nitric acid consumption in 2006
2.2.2 Estimated nitric acid consumption of China in 2007-2010
2.3 Nitric acid import of China
2.3.1 Import volume of nitric acid in 2006
2.3.2 Import sources of nitric acid in 2006
2.3.3 Forecast on nitric acid import of China in 2007-2010
2.4 Nitric acid export of China
2.4.1 Export volume of nitric acid in 2006
2.4.2 Export destination of nitric acid in 2006
2.4.3 Forecast on nitric acid export of China in 2007-2010
2.5 Price trend of nitric acid in China
2.5.1 Retrospect on price of nitric acid in 2004-2006
2.5.2 Forecast on nitric acid price of China in 2007-2010
2.6 Competition of China nitric acid industry
2.6.1 Industry system
2.6.2 Industrial distribution
2.6.3 Industrial technology
2.6.4 Environmental protection of industrial resources
2.6.5 Strategic targets and measures of nitric acid industry

3. Downstream consumption of nitric acid industry
3.1 Nitro chlorobenzene
3.1.1 Status quo of the industry
3.1.2 Industry consumption
3.2 Aniline
3.2.1 Status quo of the industry
3.2.2 Industry consumption
3.3 Dye
3.3.1 Status quo of the industry
3.3.2 Industry consumption
3.4 TDI
3.4.1 Status quo of the industry
3.4.2 Industry consumption
3.5 Nitrogenous fertilizer
3.5.1 Status quo of the industry
3.5.2 Industry consumption
3.6 Civil explosive
3.6.1 Status quo of the industry
3.6.2 Industry consumption

4. Operation performance of major enterprises in China nitric acid industry
4.1 Anhui Huainan Chemical Group Co., Ltd.
4.1.1 Production and operation
4.1.2 Competitive advantages
4.1.3 Development strategy and layout
4.2 Jinan Fertilizer Plant Co., Ltd.
4.2.1 Production and operation
4.2.2 Competitive advantages
4.2.3 Development strategy and layout
4.3 Liuzhou Chemical Industry Co., Ltd.
4.3.1 Production and operation
4.3.2 Competitive advantages
4.3.3 Development strategy and layout
4.4 Sinopec Nanjing Chemical Industry Corporation Chemical Plant Co., Ltd.
4.4.1Production and operation
4.4.2 Competitive advantages
4.4.3 Development strategy and layout

5. Development prospect of nitric acid industry in 2007-2010
5.1 Development of nitric acid industry
5.1.1 Development
5.1.2 Demand
5.2 Status quo of industry competition
5.2.1 Competition
5.2.2 Bargaining ability of suppliers
5.2.3 Bargaining ability of downstream users
5.2.4 Threat ability of industry substitutes
5.2.5 Potential threat ability
5.3 Existing problems
5.3.1 Structural gap between domestic and foreign industries
5.3.2 Production capacity
5.3.3 Industry benefit

6. Investment opportunities and risks of China nitric acid industry
6.1 Investment opportunities
6.2 Risks in investment
6.2.1 Current challenges of the industry
6.2.2 Investment risks
6.3 Investment strategies of nitric acid industry
6.3.1 Overall investment strategies need transferring
6.3.2 Extension of industry chain coexists with scale dilatation expansion
6.3.3 To keep cautious in selecting investment regions and scales