The tentative fertiliser data reports a 13% year-over-year decline in urea sales in May’24, settling at 400k tons.
On a company-wide basis, urea dispatches of EFERT and FATIMA plunged by 34% and 80% YoY, clocking in at 77k tons and 14k tons, respectively. It is pertinent to note that the EnVen Plant of EFERT is currently undergoing a turnaround, which is why the offtake remained lower. Meanwhile, urea offtake of FFC and FFBL combined climbed by 19% YoY, arriving at 289k tons.
On an MoM basis, urea sales climbed up by 22% owing to pre-buying before the commencement of the peak Kharif Season. Urea offtake of FFC and FFBL combined and EFERT displayed a jump of 30% and 2% MoM, respectively. Meanwhile, urea dispatches of FATIMA plummeted by 46% MoM.
On a cumulative basis, urea sales showcased a growth of 3% YoY at 2,555k tons in 5MCY24. Offtake of FFC and FFBL combined and FATIMA increased by 9% and 6% YoY, respectively settling at 1,237k tons and 277k tons, respectively. Meanwhile, urea sales of EFERT plummeted by 15% YoY, settling at 701k tons.
DAP sales reduced by 47% YoY in May’24
DAP sales settled at 35k tons in May’24, showcasing a plunge of 47% YoY | 62% MoM on account of weak purchasing power of farmers amid wheat crisis. Hence, DAP offtake during 5MCY24 clocked in at 416k tons, up 15% YoY.
On a company-specific basis, DAP sales of FFC and FFBL combined contracted by 36% YoY | 62% MoM to 31k tons in May’24. Therefore, FFC and FFBL’s DAP offtake during 5MCY24 clocked in at 303k tons, witnessing a growth of 33% YoY.
Whereas, EFERT’s DAP dispatches in May’24 plummeted by 87% YoY | 82% MoM to arrive at 2k tons. Despite this, EFERT’s DAP offtake in 5MCY24 increased by 37% YoY, arriving at 95k tons.
On the other hand, FATIMA Group’s DAP sales climbed up by 5x YoY | 33x MoM to reach 1.4k tons in May’24. As a result, FATIMA’s DAP offtake arrived at 7k tons during 5MCY24, descending by 78% YoY.
Inventory position
The urea inventory towards the end of May’24 stood at 427k tons compared to 368k tons in Apr’24. Whereas, DAP inventory settled at 216k tons in May’24 against 117k tons in Apr’24.
Courtesy – AHL Research
