Karachi, June 01, 2022 (PPI-OT): Monthly Fertiliser Offtake – Apr-22: Urea sales up +48%y, While DAP sales doubled to 95kt
As per the latest data published by National Fertiliser Development Centre (NFDC) for the month of Apr-22, industry Urea and DAP sales are up by +48%y arriving at 459k.T and +2.08x arriving at 95.2k.T respectively. Whereas, CAN sales are down by 18%y to 57.4k.T.
Company-wise, FATIMA and FFC led the growth chart with sales up by +2.3xy and +44%y respectively. EFERT witnessed an increase of +43%y to 157.2kt, while FFBL experienced a decline in offtake by 10.3%y to 33.5 k.t.
For DAP sales, FFBL and EFERT sales stood at 35.5kt and 26.3kt, up by +61.8%y and +9.6xy respectively compared to same period last year. However, FFC sales declined by 57.8%y to 2.6kt. Total industry sales increased by +2.1xy to 95.2kt.
Urea sales increased with Dap sales significantly
As per the latest data published by National Fertiliser Development Centre (NFDC) for the month of Apr-22, industry Urea and DAP sales are up by +48%y arriving at 459k.T and +2.08x arriving at 95.2k.T respectively. Whereas, CAN sales are down by 18%y to 57.4k.T.
This brings 4m’22 total industry Urea sales to 2,092k.T (up by +23%y), DAP sales to 343k.T (down by 5%y) and CAN sales to 272k.T (down by 14%y).
Urea sales up by +48%y to 459kt
Company-wise, FATIMA and FFC led the growth chart with sales up by +2.3xy and +44%y respectively. EFERT witnessed an increase of +43%y to 157.2kt, while FFBL experienced a decline in offtake by 10.3%y to 33.5 k.t. In our view, the increase is urea sales is mainly attributable to increasing demand and availability of gas. Total urea production during the month stood at 579kt along with opening inventory of 199kt. This takes monthly urea availability to 778kt and closing inventory to 318kt.
DAP sales increased by 2xy to 95.2kt
For DAP sales, FFBL and EFERT sales stood at 35.5kt and 26.3kt, up by +61.8%y and +9.6xy respectively compared to same period last year. However, FFC sales declined by 57.8%y to 2.6kt. Total industry sales increased by +2.1xy to 95.2kt. We attribute this increase in sales owing to low base effect. Overall industry production for DAP during the month stood at 74.8kt, while total availability during the month stood at 411kt, including imported and opening inventory. This brings DAP closing inventory at 336kt.
Outlook
Going forward, we expect DAP sales could come further under pressure due to higher commodity prices. As of latest, domestic DAP prices as per Pakistan Bureau of Statistics have reached PKR 9,924/bag compared to PKR 5,535/bag last year. Recently, urea manufacturers and the Government have agreed upon reduction in urea price to PKR 1,850/bag which would benefit in terms of sales.