A review of Pakistan fertilizer Sector sales in Sept 22-

As per the provisional fertilizer offtake data of Sep’22, urea offtake climbed up by 4% YoY to 508k tons compared to 487k tons in SPLY. Urea sales of EFERT witnessed a jump of 22% YoY, settling at 164k tons. Meanwhile, offtake of FFC and FFBL (combined) and FATIMA declined by 5% and 15% YoY, arriving at 237k tons and 79k tons, respectively.

On a MoM basis, urea offtake registered a fall of 8% owed to restricted mobility due to floods in the previous month. Hence, sales of EFERT and FATIMA reduced by 6%, and 24% MoM, respectively. Whereas, offtake of FFC and FFBL (combined) depicted a growth of 8% MoM. On a cumulative basis, urea sales increased by 4% YoY during 9MCY22, clocking-at 4,770k tons. The offtake of FATIMA showcased a boost of 24% YoY to 727k tons in 9MCY22. However, the urea sales of FFC and FFBL combined witnessed a drop of 2% YoY, settling at 2,162k tons while EFERT’s sales plunged by 13% during 9MCY22 to 1,522k tons.

 DAP offtake plummets by 79% YoY in Sep’22

DAP offtake depicted a hefty decline of 79% YoY to 47k tons during Sep’22 owed to floods in the country. On MoM basis, the DAP sales ascended by 80% given advance buying before the commencement of Rabi season. Albeit, DAP offtake during 9MCY22 plummeted by 40% YoY at 724k tons amid higher DAP prices. On a company-specific basis, DAP sales of FFC and FFBL arrived at 24k tons in Sep’22, reporting a drastic fall of 80% YoY, while posting a growth of 89% MoM . With this, FFC and FFBL’s DAP offtake during 9MCY22 clocked-in at 438k tons, down by 31% YoY. Whereas, EFERT’s DAP sales during Sep’22 reduced by 63% YoY but climbed up by 122% MoM to 19k tons. Subsequently, EFERT’s DAP offtake in 9MCY22 settled at 162k tons, down by 18% YoY.

 Inventory position

Towards the end of Sep’22, the closing inventory of urea producers stood at 215k tons versus 195k tons in Aug’22. Moreover, the inventory position of DAP is 477k tons as of Sep’22.

Courtesy – AHL Research

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Posted in Fertilizer & Petrochemical Industries.

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