Urea sales improve 12%MoM/10%YoY in May’23

• As per the latest data compiled by NFDC, total urea availability during May 2023 was 735k tons, which comprised 242k tons of the previous month’s leftover and domestic production of 493k tons. Urea’s offtake during May 2023 was 459k tons. Thus closing balance is worked out to be 277k tons.

• Urea availability during Kharif, 2023 is estimated at 3,306k tons comprising 69k tons of previous season left over and 3,237k tons local production. Projected urea offtake during the season is 3,297k tons reflecting a tight situation from June, 2023 onward. This tight situation coupled with a shortfall of 209k tons urea production from January to May 2023 necessitates import of at least 200k tons urea on immediate basis to ensure smooth supplies of urea during current Kharif and upcoming Rabi 2023-24. Additionally, SNGPL network based two urea manufacturing plants may be kept operational during 2023 for sufficient availability and price stability of urea in domestic market.

DAP offtakes expands 30%MoM, diminishes 30%YoY in May’23

• Total availability of DAP during May 2023 was 394k tons comprising 285k tons opening inventory, 34k tons imported supplies and 74k tons of local production. DAP offtake was 66k tons. The closing balance works out to be 333k tons.

• Kharif, 2023 started with opening balance of 274k tons. Domestic production during the season is estimated at 429k tons whereas 74k tons imported supplies have been finalized. Thus, total availability of DAP will be 777k tons. DAP demand is estimated around 759k tons. A reasonable quantity of NP, SSP and NPKs would also be available to meet the demand of current Kharif.

Fertilizer prices remain stagnant May’23

• Prices of urea sona, urea other and SSP increased by 2.7, 3.4 and 1.4 per cent during May 2023 as compared with previous month. Prices of DAP, NP and SOP decreased by 2.4, 3.5 and 2.1 per cent, respectively. While price of C CAN and NPK slightly decreased by 0.4 and 0.8 per cent as compared with previous month.

Posted in Fertilizer & Petrochemical Industries.

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