Urea sales remain flat MoM in Jan’22

· As per NFDC, Jan’22 urea offtake for the industry clocked in at 598k MT, flat MoM, however, contracting 8%YoY due to high base in same period last year. The ending inventory stands at 27k MT, declining 51%MoM/72%YoY.

· Company wise, sales of EFERT depicted a growth of 10%MoM followed by FFBL (+6%MoM) and FATIMA (+2%MoM) while FFC’s offtake witnessed a decline of 3%MoM. On YoY basis, EFERT’s sales stood 40% lower due to high base effect.

· DAP offtake in Jan’22 stood at 113k MT, declining 3%MoM due to higher prevailing prices which currently stand at PkR9,600/bag. The largest decline was witnessed by FFBL (-20%MoM) while the offtake by EFERT/FFC depicted a growth of 135/36%MoM.

· According to the management of EFERT, ~140-150k MT urea left the factories but did not make its way to the market in 2HCY21 which created artificial shortage in the industry. The GoP has been able to seize partial quantities from Chaman border and rural areas of Punjab which may ease the pressure on depleting inventory.

Courtesy- AKD Research

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