According to the provisional fertilizer offtake data for Dec’22, urea dispatches posted a jump of 39% YoY to 833k tons against 599k tons in SPLY. Urea sales of FFC, EFERT, and FATIMA climbed up by 5%, 16%, and 60% YoY, to clock-in at 277k tons, 221k tons and 157k tons, respectively. Similarly, on a MoM basis, urea offtake surged by 43% owing to the seasonality factor and availability of urea from EFERT amid resumption of production from EnVen plant. Therefore, sales of FFC and FFBL (combined) and EFERT ascended by 2% and 131% MoM, respectively. Meanwhile, urea offtake of FATIMA plummeted by 6% MoM. On a cumulative basis, urea sales witnessed an uptick of 6% YoY during CY22, to settle at 6,616k tons. The offtake of FATIMA witnessed a jump of 34% YoY to 1,126k tons in CY22. However, the urea sales of FFC and FFBL (combined) showed a dip of 1% YoY to 2,945k tons while EFERT’s sales decline by 16% during CY22 to 1,935k tons.

DAP offtake grow by 37% YoY in Dec’22

DAP offtake depicted a jump of 37% YoY to settle at 160k tons during Dec’22 due to an increase in the support price of wheat and delayed buying of DAP this year. Meanwhile, the DAP sales plunged by 33% MoM. Albeit, DAP offtake during CY22 declined by 36% YoY to 1,207k tons primarily due to higher DAP prices and flood devastation. On a company-specific basis, DAP sales of FFC and FFBL clocked in at 113k tons in Dec’22, showing a jump of 38% YoY, while reducing by 20% MoM. With this, FFC and FFBL’s DAP offtake during CY22 reached 725k tons, decreasing by 27% YoY. Meanwhile, EFERT’s DAP sales in Dec’22 showcased a massive growth of 3.2x YoY and a decline of 38% MoM to 32k tons. Hence, EFERT’s DAP offtake in CY22 clocked in at 264k tons, down by 11% YoY.

Inventory position

By the end of Dec’22, the closing inventory of urea settled at 64k tons compared to 313k tons in Nov’22. Whereas, the inventory of DAP is 432k tons as of Dec’22.

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Courtesy- AHL Research