· As per the numbers released by NFDC, total urea offtake for the industry clocked in at 574k MT (+8%YoY/+12%MoM). The cumulative 11MCY21 numbers depict a growth of 11%YoY to stand at 5.7mn MT in contrast to 5.15mn MT in same period last year.
· DAP offtake decreased 36%MoM/38%YoY to 219k MT taking 11MCY21 DAP offtake to 1.64mn MT compared to 1.96mn MT in same period last year, down by 16%YoY.
· As per NFDC, the average prices of urea have increased to PkR1,974/bag as compared to ~PkR1,800/bag in previous month while current retention price for the manufacturers remains constant at PkR1,725/bag. This highlights the disparity where the prices in secondary markets have increased where dealers and middlemen are keeping higher than the usual margin to themselves.
· In the international markets, the price of urea are still hovering at US$930/MT which translates into landed price of PkR~9,500/bag whereas the price of DAP have increased further to US$810/MT, translating into landed cost of ~PkR8,500/bag. As per our channel checks, prices in local market currently stand at ~PkR8,900/bag.
Courtesy – AKD Research