Pakistan’s fertilizer industry likely witnessed mixed trends in November 2024. Urea sales increased by 7% year-over-year (YoY) to 652,000 tons, while DAP sales declined by 14% YoY to 239,000 tons. The increase in urea sales can be attributed to the seasonal demand for Rabi crops, which led to an 82% month-over-month (MoM) increase in sales. However, the overall urea sales for the 11 months of 2024 stood at 5.58 million tons, down 7% YoY due to weak farm economics.

Among the companies, Engro Fertilizers (EFERT) witnessed a 12% YoY decline in urea sales to 191,000 tons in November 2024, primarily due to higher urea prices than its peer companies. On the other hand, Fauji Fertilizer Company (FFC) recorded a 13% YoY increase in urea sales to 226,000 tons.

In the DAP segment, total sales declined by 14% YoY to 239,000 tons in November 2024. However, the 11-month DAP sales stood at 1.47 million tons, up 3% YoY.

The closing inventory of urea is expected to stand at around 789,000 tons in November 2024, down from 841,000 tons in October 2024. EFERT has the highest inventory of 348,000 tons, followed by FATIMA with 209,000 tons.

The fertilizer industry’s performance in November 2024 reflects the mixed trends in the agricultural sector. While the seasonal demand for Rabi crops boosted urea sales, the weak farm economics and higher prices affected overall sales.

Courtesy – Topline Pakistan Research and AI.