Islamabad, Oct 4: Urea Sales Down 35% in September 2024
Urea offtake in Pakistan experienced a significant decline of 35 percent year-on-year (YoY) in September 2024, falling to 365,000 tons from 564,000 tons during the same period last year, according to Arif Habib Limited. This drop is primarily attributed to weak agronomic conditions.
When examining specific companies, the urea offtake for FFC and FFBL Group decreased by 8 percent YoY to 231,000 tons, while FATIMA’s sales fell by 20 percent YoY to 56,000 tons. EFERT faced a dramatic 71 percent YoY decrease in sales, largely due to higher urea prices relative to its competitors.
Month-on-month (MoM), urea sales also plummeted by 35 percent, with FFC and FFBL combined, FATIMA, and EFERT experiencing declines of 8 percent, 48 percent, and 65 percent, respectively.
Cumulatively, urea sales for the first nine months of 2024 (9MCY24) contracted by 8 percent YoY to 4,573,000 tons.
FATIMA and EFERT’s offtake decreased by 23 percent and 11 percent YoY, settling at 621,000 tons and 1,322,000 tons, respectively. In contrast, FFC and FFBL saw a 3 percent YoY increase, reaching 2,224,000 tons.
DAP Sales
In September 2024, DAP sales rose to 143,000 tons, reflecting a 35 percent YoY increase and a 61 percent MoM rise, driven by pre-buying ahead of the Rabi season. Cumulatively, total DAP offtake for 9MCY24 reached 939,000 tons, down 6 percent YoY.
On a company basis, DAP sales for FFC and FFBL combined increased by 13 percent YoY and 59 percent MoM, totaling 86,000 tons in September 2024.
Their combined DAP offtake for 9MCY24 reached 618,000 tons, a decline of 11 percent YoY.
In contrast, EFERT’s DAP dispatches fell by 32 percent YoY, while rising 33 percent MoM to 15,000 tons. For 9MCY24, EFERT’s DAP offtake rose by 20 percent YoY to 196,000 tons.
Conversely, FATIMA Group’s DAP sales plummeted by 59 percent YoY to 2,000 tons in September 2024, although they increased 2.3 times MoM. Consequently, FATIMA’s DAP offtake for 9MCY24 fell by 37 percent YoY to 37,000 tons.
By the end of September 2024, urea inventory was recorded at 635,000 tons, an increase from 406,000 tons in August 2024. Meanwhile, DAP inventory also rose to 365,000 tons in September 2024, compared to 232,000 tons in August 2024.
