Fertilizers: Urea Sales Surge in August 2025 to Record High

Karachi: A remarkable upswing has been observed in the urea market with August 2025 witnessing a record-breaking surge in sales, marking the highest figures for the month in eight years. Provisional data indicates that the urea off-take for August is poised to reach 816,000 tons, showcasing a significant 46% increase year-on-year and a 34% rise month-on-month.

The robust sales come despite a projected 10% annual decline in cumulative urea off-take for the first eight months of the calendar year 2025. In contrast, diammonium phosphate (DAP) sales are expected to experience a 41% increase compared to last year during the same period.

Company performances highlight that the Fauji Fertilizer Company (FFC) anticipates a 29% year-on-year increase in urea off-take, totaling 324,000 tons in August, which includes 59,000 tons of granular urea. Meanwhile, Engro Fertilizers (EFERT) is projected to achieve a striking 76% year-on-year growth, reaching 286,000 tons of urea sales.

The closing inventory of urea is estimated to be around 1.1 million tons as of the end of August. EFERT is expected to maintain a steady market share of 35%, while FFC’s share is anticipated to decline by five percentage points month-on-month to approximately 40% in August. Additionally, EFERT has announced the termination of its Rs100 per bag subsidy on urea effective from the first of September 2025, signaling a strategic shift in its pricing policy.