Fertilizer Sales Decline in May 2024, Urea Sales Down 15% Year-on-Year

Karachi, Fertilizer offtakes in May 2024 showed a decline, with Urea sales expected to reach 392,000 tons, down 15% year-on-year but up 20% month-on-month due to a low base. This brings the cumulative Urea offtake for the first five months of 2024 to a 2% year-on-year increase. Diammonium phosphate (DAP) offtake for May 2024 is estimated at around 34,000 tons, representing a year-on-year change of -48% and a month-on-month decline of 63%.

According to JS Global, Fauji Fertilizer Company (FFC) is anticipated to report Urea sales of 230,000 tons in May, reflecting increases of 11% year-on-year and 22% month-on-month. Engro Fertilizer (EFERT), on the other hand, is likely to see a 34% year-on-year drop in May sales due to the offline status of its main Enven plant for a turnaround that began in April 2024.

On the pricing front, FFC and Fauji Fertilizer Bin Qasim Limited (FFBL) have reduced DAP prices in the local market. The price reduction by the Fauji group aims to narrow the gap between local and imported DAP prices amidst weak demand, which may impact FFBL’s future margins.

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