Karachi, August 11, 2022 (PPI-OT): Fertilizers: July-2022 Urea off-take to decline 37% YoY

As per provisional data, Urea sales in Jul-2022 are expected to clock in at 390k tons, down 37% YoY. For the month of Jul-2022, Fauji Fertilizer (FFC) is expected to post Urea sales volume of 147k tons followed by Engro Fertilizer Ltd (EFERT)’s estimated off-take of 88k tons while Fauji Fertilizer Bin Qasim’s (FFBL) off-take is expected at 23k tons. Cumulative off-take for 7MCY22 is anticipated to clock in at 3.6mn tons as compared to 3.5mn tons in the SPLY, reflecting a 3% YoY increment. Sales are expected to decline primarily due to lower production owing to breakdown in FFC (Goth Machhi) and EFERT’s (Enven) plants in July. Assuming Urea production of ~425k tons for the month, urea’s closing inventory comes to around 290k tons for Jul-2022.

DAP offtake for July is likely to clock in at 68k tons vs. 193k tons in SPLY depicting a 65% YoY dip. This is likely due to lower demand of the product coupled with higher prices in the local market owing to restricted supply globally.