June Urea offtake rises 2% YoY

July 02, 2026 (MLN): Urea offtake increased 2% YoY to 592k tons in June 2026, up 41% MoM from 419k tons in May 2026.

Offtakes remained relatively subdued during May and June, showing inventory build-up by dealers in March and April ahead of anticipated price hikes.

In April 2026, FFC increased Sona Urea (prilled) prices by Rs100/bag to Rs4,500/bag, effective April 16, while EFERT raised urea prices by Rs100/bag to Rs4,445/bag, effective April 15. Both companies have maintained stable urea prices since then.

At the company level, FFC and FFBL's urea offtake rose 14% YoY to 306k tons in June, up 19% MoM from 257k tons.

FATIMA and AGL outperformed the market, recording YoY growth of 72% and 69% respectively, with FATIMA's offtake at 140k tons (up 61% MoM from 87k tons) and AGL's at 40k tons (up 27% MoM from 31k tons), according to report by Arif Habib Limited.

EFERT's offtake fell 49% YoY to 106k tons, though it rose 144% MoM from 43k tons, translating into a reduced market share of 17.9% from 35.7% in the same period last year. FFC, FATIMA and AGL increased their market shares during the month.

On a cumulative basis, 1HCY26 urea offtake increased 7% YoY to 2,512k tons from 2,351k tons in 1HCY25. FFC's sales grew 25% YoY to 1,405k tons from 1,122k tons, while EFERT's sales declined 22% YoY to 537k tons from 691k tons.

FATIMA recorded a 6% YoY recovery in urea sales to 415k tons from 390k tons, while AGL's 1HCY26 offtake rose 5% YoY to 155k tons from 147k tons.

DAP offtakes registered a decline of 60% YoY to 46k tons in June 2026, down 25% MoM from 61k tons, due to higher international DAP prices. On a cumulative basis, 1HCY26 DAP offtake rose 6% YoY to 484k tons from 455k tons in 1HCY25.

At the company level, DAP offtake recorded a sharp contraction across all players. FFC and FFBL's DAP offtake fell 52% YoY to 37k tons, down 3% MoM from 38k tons, though 1HCY26 sales grew 10% YoY to 318k tons from 288k tons.

EFERT's DAP offtake fell 76% YoY to 3k tons, down 59% MoM from 7k tons, with 1HCY26 offtake declining 29% YoY to 58k tons from 81k tons.

FATIMA's DAP offtake declined 85% YoY to 1k ton, though up 108% MoM from a negligible base, with 1HCY26 offtake down 58% YoY to 9k tons from 21k tons.

Private imports fell 71% YoY to 5k tons, down 68% MoM from 16k tons, while 1HCY26 private import volumes rose 51% YoY to 99k tons from 66k tons.

DAP-phos acid margins rose substantially to reach $279/ton during the month, as international DAP prices increased 24% QoQ to $886/ton, while phosphoric acid prices remained flat at $1,292/ton.

As a result, farmers continue to substitute DAP with nitrogen-based fertilizers, as showed in the trend in urea offtakes.

CAN offtakes remained robust in June 2026, rising 33% YoY to 121k tons, while 2QCY26 offtakes increased 27% YoY to 278k tons. NP offtakes exhibited signs of weakness, declining 7.1% YoY to 83k tons, likely driven by elevated NP prices.

During June 2026, for urea, FFC led with a market share of 51.7%, followed by FATIMA at 23.7%, and EFERT at 17.9%. For DAP, FFC once again led with a market share of 80.3%, followed by EFERT at 6.1%, and FATIMA at 2.6%.

Urea inventories remained broadly stable at 844k tons during the month. EFERT continued to hold the largest share, increasing to 77.3%, showing inventory accumulation along with sales slowdown, while FFC accounted for 2.1% of industry inventory and FATIMA held 20.5%.

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