· Urea sales for Dec’22 clocked in at 833.2k MT, up by 43%MoM while increasing by 39%YoY. This takes CY22 urea offtakes to 6.8mn MT, up by 7% compared to CY21 and breaking the all-time record of offtakes for the nutrient.
· CY22 saw 446.7k MT of imported urea sold while no urea was imported in the preceding year, as the demand for urea greatly outweighed the local industry’s supply. On the annual basis, FFC sold 2.4mn MT of urea, remaining flat YoY while EFERT saw a decline of 16%YoY to record 1.9mn MT sold on the back of multiple plant shutdowns.
· DAP sales recorded a significant decline in Dec’22, declining by 33%MoM despite the average prices of the nutrient decreasing in the month. After posting 157.5k MT sold for the month, DAP sales for CY22 have clocked in at 1.2mn MT, a decline of 36%YoY.
· Going forward, we expect urea offtakes of ~6.6mn MT for the coming year. With a hike in feed and fuel gas prices looming, the local urea manufacturers are in a very strong position to pass-on the increase in costs to consumers, as international urea prices far outweigh the local prices.
Courtesy – AKD Research