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Urea off-take up by 103% in June

Urea off-take up by 103% in June

LAHORE: As per numbers released by National Fertilizer Development Centre (NFDC), urea off-take numbers for the month of June 2017 clocked in at 1,060,000 tons, up 79 percent annually and 103 percent monthly. The numbers remained in line with market expectations.

DAP off-take also fell in line with expectations and clocked in at 112,000 tons, posting increase of 161 percent annually and 61 percent monthly. Strong numbers can be attributed to depressed urea prices and pre-buying by dealers in anticipation of price hike from reduction in urea subsidy by the government. It is believed that sales are likely to revert to normal levels during 2H2017

Cumulatively during 6M2017, urea off-take has posted increase of 51 percent YoY to clock in at 2,752,000 tons whereas DAP off-take during the same period posted increase of 21 percent YoY to stand at 590,000 tons. The industry ended the month with inventory in-hand of 1,084k tons, down 35 percent YoY. The inventory levels are expected to pick up going forward again as Kharif sowing season reaches conclusion. During the month of June 2017, Fatima Fertilizers (FATIMA) remained the star performer with urea sales of 152,000 tons (+426%/+107% YoY/MoM) followed by Engro Fertilizers (EFERT) with off-take of 318,000 tons (+168%/129% YoY/MoM).

Exports continued in June 2017 as well with all mainstream manufacturers namely Fauji Fertilizer (FFC), FATIMA and EFERT exporting quantities of 5,000 tons, 7,000 tons and 43,000 tons respectively.