Urea sales declined by 17% YoY in June 2023

According to the available provisional data, urea dispatches for the month of Jun’23 showcased a fall of 17% YoY to 610k tons compared to 737k tons in SPLY. On a company-wise basis, urea sales of FFC and FFBL combined, EFERT, and FATIMA plummeted by 17%, 13%, and 14% YoY, settling at 296k tons, 210k tons, and 85k tons, respectively.

On a MoM basis, urea offtake climbed up by 33% which is primarily due to peak demand during the month owing to the seasonality factor (Kharif Season) along with anticipation of hike in urea prices. The urea sales of EFERT, FFC and FFBL (combined), and FATIMA jumped up by 79%, 22%, and 17% MoM, respectively.

On a cumulative basis, urea sales reduced by 4% YoY during 1HCY23 to 3,101k tons. Urea dispatches of FFC and FFBL combined, EFERT, and FATIMA decreased by 7%, 6%, and 22% YoY, respectively during 1HCY23 to clock in at 1,428 tons, 1,034k tons, and 346k tons, respectively. On the other hand, the NFML’s sales stood at 217k tons, augmenting by a massive 15x YoY in 1HCY23.

DAP offtake fall by 7% YoY in Jun’23

DAP sales dwindled by 7% YoY, while ascending by 105% MoM to 135k tons in Jun’23 owing to seasonality factor. With this, DAP offtake during 1HCY23 plunged by 15% YoY to 497k. On a company-specific basis, DAP sales of FFC and FFBL arrived at 97k tons in Jun’23, reducing by 15% YoY, while up 102% MoM. Therefore, FFC and FFBL’s DAP offtake during 1HCY23 reached 325k tons, recording a fall of 10% YoY. Meanwhile, EFERT’s DAP sales in Jun’23 registered a growth of 6% YoY but stumbled by 8% MoM, to clock-in at 12k tons. Hence, EFERT’s DAP offtake during 1HCY23 arrived at 82k tons, tumbling by 27% YoY.

Inventory position

The closing inventory of urea towards the end of Jun’23 settled at 215k tons vis-à-vis 277k tons in May’23. Whereas, DAP inventory stood at 312k tons as of Jun’23.

Courtesy – AHL Research

Posted in Fertilizer & Petrochemical Industries.

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