·         As per the numbers released by NFDC, total urea offtake for the industry clocked in at 514k MT (+24%YoY/+5%MoM). The cumulative 10MCY21 numbers depict the growth of 12%YoY to stand at 5.16mn MT in contrast to 4.6mn MT in the same period last year.

·         DAP offtake increased 55%MoM/+49%YoY to 342k MT taking 10MCY21 DAP offtake to 1.4mn MT compared to 1.6mn MT in the same period last year, down by 11%YoY.

·         The local retail prices of urea currently stand at ~PkR1,800/bag while in the international markets, the price of urea is hovering around US$932/MT which translates into a landed cost of PkR10k/bag, thereby providing ample room for the local manufacturers to pass on the costs in the local market in case of gas price hikes.

·         The current international DAP prices stand at US$740/MT translating into the landed cost of PkR8,200/bag. As per our channel checks, prices in the local market currently stand at ~PkR8,100/bag, at par with the international markets.

Courtesy – AKD Research