Feb’22: Urea and DAP sales plunged by 14% and 50% MoM in Pakistan during Feb 22

As per provisional fertilizer offtake data for the month of Feb’22, urea sales climbed up by 27% YoY to 515k tons in contrast to 406k tons in SPLY. Offtake of FFC and FFBL (combined) and FATIMA revealed a jump of 23% and 80% YoY, respectively, to settle at 251k tons and 75k tons, respectively. Whereas, EFERT’s urea sales witnessed a meagre dip of 1% YoY, clocking-in at 159k tons. However, on a MoM basis, urea offtake depicted a drop of 14% owed to fall in availability of urea due to lower inventory levels. Urea sales of FFC and FFBL (combined), EFERT and FATIMA declined by 3%, 24% and 25% MoM, respectively. On a cumulative basis, urea offtake jumped up by 6% YoY during 2MCY22, to settle at 1,113k tons. The urea sales volume of FFC and FFBL combined registered a growth of 20% YoY, to arrive at 509k tons while FATIMA’s sales surged by 48% to 175k tons. Whereas, offtake of EFERT witnessed a dip of 28% YoY, clocking-in at 368k tons.

DAP offtake fall by 36% YoY in Feb’22

DAP sales reported a decline of 36% YoY / 50% MoM to 57k tons during Feb’22 given higher DAP prices. Meanwhile, during 2MCY22, DAP offtake remained stable at 170k tons. On a company specific basis, DAP sales of FFC and FFBL came out at 28k tons in Feb’22, showcasing a fall of 26% YoY and 59% MoM. With this, FFC and FFBL’s DAP offtake during 2MCY22 clocked-in at 96k tons, up by 107% YoY owed to adequate gas supply to FFBL, which ensured availability of DAP during the period. Whereas, EFERT’s DAP sales during Feb’22 ascended by of 144% YoY, while witnessing a 44% MoM decline to 13k tons. Hence, EFERT’s DAP offtake in 2MCY22 increased by 12% YoY to 36k tons.

Inventory position

Towards the end of Feb’22, closing inventory of urea with local producers stood at 10k tons versus to 27k tons in Jan’22. Moreover, inventory position of DAP is set at 251k tons towards the end of Feb’22.

Courtesy – AHL Research

Posted in Article & Features.

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