Karachi, November 07, 2022 (PPI-OT): Fertilizers: Urea offtake declines 16% YoY

As per provisional data, total Urea sales in Oct-2022 are expected to clock in at 429k tons, down 16% YoY. For the month of Oct-2022, Fauji Fertilizer (FFC) is expected to post Urea sales volume of 190k tons followed by Engro Fertilizer Ltd (EFERT)’s estimated off-take of 97k tons while Fauji Fertilizer Bin Qasim’s (FFBL) off-take is expected at 42k tons. Cumulative off-take for 10MCY22 is anticipated to total to 5.1mn tons as compared to 5.2mn tons in the SPLY, reflecting a 1% YoY decline. Assuming Urea production of ~500k tons for the month, urea’s closing inventory comes to around 365k tons for Oct-2022.

DAP offtake for October is likely to clock in at 63k tons vs. 342k tons in SPLY depicting an 82% YoY dip. This is likely due to lower demand of the product amid floods coupled with higher prices in the local market.