Karachi, November 25, 2021 (PPI-OT): Pakistan Fertilizer: DAP drives the volumes in Oct’21

As per the numbers released by NFDC, total urea offtake for the industry clocked in at 514k MT (+24%YoY/+5%MoM). The cumulative 10MCY21 numbers depict a growth of 12%YoY to stand at 5.16mn MT in contrast to 4.6mn MT in same period last year.

DAP offtake increased 55%MoM/+49%YoY to 342k MT taking 10MCY21 DAP offtake to 1.4mn MT compared to 1.6mn MT in same period last year, down by 11%YoY.

The local retail prices of urea currently stand at ~PkR1,800/bag while in the international markets, the price of urea is hovering around US$932/MT which translates into landed cost of PkR10k/bag, thereby providing ample room for the local manufacturers to pass on the costs in the local market in case of gas price hikes.

The current international DAP prices stand at US$740/MT translating into landed cost of PkR8,200/bag. As per our channel checks, prices in local market currently stand at ~PkR8,100/bag, at par with the international markets.