Urea offtakes

• Provisional urea offtake declined 3% YoY to 463k tons in May’26, likely reflecting strong sales in March and April, which resulted in higher dealer inventories amid rising prices. During Apr’26, FFC increased Sona urea (prilled) prices by PKR 100/bag to PKR 4,500/bag, effective April 16, 2026, while EFERT also raised urea prices by PKR 100/bag to PKR 4,445/bag, effective April 15, 2026.
• FATIMA and FFC outperformed the market, recording YoY growth of 24% and 61%, respectively, while EFERT’s offtake fell sharply by 78% YoY to 32k tons (the lowest ever offtake for any month of May), reducing its market share to 7.9%. Consequently, FFC and FATIMA gained market share during the month.
• On a cumulative basis, 5MCY26 urea sales increased 8% YoY to 1,908k tons. FFC’s sales rose 29% YoY to 1,099k tons, whereas EFERT’s sales declined 13% YoY to 420k tons.

DAP sales down by 38% YoY in May’26

DAP offtakes

• DAP offtake also declined 38% YoY to 59k tons in May’26, due to higher DAP prices driven by rising input costs and international prices.
• Amid rising US–Iran tensions, DAP–phosphoric acid margins expanded to USD 267/ton (Jun TD), as phosphoric acid prices remained stable at USD 1,290/ton while DAP prices increased 23% QoQ (Jun TD) to USD 873/ton.
• Consequently, farmers appear to have partially shifted toward relatively more affordable fertilizer alternatives, as reflected in 5MCY26 urea offtake trends. Moreover, during May’26, demand for NP and CAN fertilizers showed a notable improvement, with NP offtakes rising 18.4% YoY to 89.5k tons and CAN offtakes increasing 7.3% YoY to 89k tons in May’26.
• At the company level, DAP offtake recorded a sharp contraction across major players, with FFC declining 44% YoY to 38k tons, EFERT falling 52% YoY to 7k tons, and FATIMA posting a steep 81% YoY decline to just 1k tons, albeit on a relatively low base.

Market Share

• During May’26, for urea, market share stood at 63.1% for FFC, 7.9% for EFERT, and 21.4% for FATIMA; in DAP, FFC led with 64.6%, followed by EFERT (11.0%) and FATIMA (1.1%).
• Moreover, urea inventories remained broadly stable at 821k tons in May’26. Within this, EFERT held the largest share at 71.9%, reflecting relatively steady production alongside softer sales momentum, while FFC accounted for 4.5% of industry inventory and EFERT held 22.8%.

Courtsy –AHL Research