Urea sales surge 10pc

KARCHI: Pakistan’s urea sales surged by 10 percent to 5.081 million tonnes in the first ten months of calendar year 2021 compared to 4.626 million tonnes in the corresponding months of last year, spurred by higher agricultural activities and better farm economics.

However, diammonium phosphate (DAP) offtake decreased by five percent to 1.527 million tonnes in the months under review compared to 1.603 million tonnes in the same months of last year, data showed on Wednesday.

According to National Fertilizer Development Company (NFDC) data, urea sales in the month of October 2021 grew by 23 percent to 506,000 tonnes compared to 413,000 tonnes in the same month last year.

DAP sales on the other hand registered 42 percent growth in the month under review, going up to 325,000 tonnes compared to 229,000 tonnes in October last year.

Al Habib Capital Markets in its note said DAP sales in October 2021 were expected to go up by 42 percent YoY and 47 percent MoM amidst pre-buying by dealers/farmers in anticipation of further hike in DAP price and seasonal demand.

Currently, the rabi season is in its midst. November, December and January are the main rabi months. Farmers sow wheat, gram, lentil, tobacco, rapseed, barley and mustard during the season, which increases the demand for total nutrients in the year.

Company-wise data shows that urea sales of Fauji Fertilizer Company (FFC) and Fauji Fertilizer Bin Qasim Limited (FFBL) remained almost flat at 2.450 million tonnes compared to 2.424 million tonnes in the same period last year.

Urea sales of Engro Fertilizer registered 15 percent growth in the months under review to come to 1.898 million tonnes compared to 1.645 million tonnes in the corresponding months last year.

The combined DAP sales of FFC and FFBL dropped by three percent to 797,000 tonnes compared to 825,000 tonnes, whereas DAP sales of Engro Fertilizers also registered a negative growth of 21 percent to 265,000 tonnes compared to 337,000 tonnes in the same months of the previous year.

The sales of imported DAP, on the other hand went up to 392,000 tonnes in the first 10 months of 2021 compared to 348,000 tonnes in the same months of last year, posting 13 percent growth.

Similarly, sales of calcium ammonium nitrate (CAN) increased 27 percent to 779,000 tonnes in 10MCY21, from 532,000 tonnes in 10MCY20. October sales of the fertiliser went up 217 percent to 106,000 tonnes, from 33,000 tonnes in the same month last year.

NP offtake climbed up 27 percent to 692,000 tonnes in 10MCY21, from 544,000 tonnes in 10MCY20. October 2021 sales were 120,000 tonnes, 105 percent higher than 58,000 tonnes in the same month last year.

Arif Habib Limited in its research note said, “Towards the end of October 2021, closing inventory of urea with local producers stands at 107k tonnes as compared to 116k tonnes in September 2021. Furthermore, inventory position of DAP is set at 139k tonnes by the end of October 2021.”