Urea sales likely up 20% in June

News Image

By MG News | July 07, 2025 at 10:00 AM GMT+05:00

0:00

July 07, 2025 (MLN): Fertilizer industry is estimated to have posted a 20% YpY recovery in Urea off-take for June 2025, reaching 580,000 tons, amid seasonal Kharif demand, improved irrigation conditions, and increased agri-financing.

However, sector analysts caution that overall first-half performance remains underwhelming, with cumulative Urea sales likely down 23% YoY to 2.35 million tons.

The projections, published by JS Global Capital in a July 4 research note, suggest that Engro Fertilizers Ltd. (EFERT) may have captured market momentum with an estimated 32% YoY growth in June off-take to 205,000 tons, while Fauji Fertilizer Company Ltd. (FFC) is expected to have posted a modest 4% YoY gain to 269,000 tons.

EFERT’s estimated market share rose to 35%, up 3 percentage points from last year, as FFC’s share contracted by 8 points.

Despite the apparent rebound, Urea inventories are expected to remain elevated at around 1.3 million tons by end-June- potentially the highest first-half inventory since 2016.

According to JS analysts, this oversupply could revive export discussions as a policy lever to mitigate the buildup heading into the second half of the year.

“Assuming assuming stable capacity utilization, exports remain a key trigger for the sector even with an expected normalization in demand during 2HCY25,” the note said.

On the phosphate side, Di-Ammonium Phosphate (DAP) sales are projected to have declined 15% YoY in June to 104,000 tons due to high prices and seasonal moderation.

Local DAP prices have climbed to Rs13,000/bag, up 10% year-to-date, in response to a 25% YoY rise in global DAP prices and 19% uptick in phosphoric acid rates.

EFERT raised its DAP price by Rs200/bag starting July 1.

Market Snapshot (CY25E):

CompanyEst. P/EDividend YieldMarket Cap (Rs mn)
FFC7.5x10%588,797
EFERT8.8x12%259,782

Note: Figures are based on provisional estimates and internal analysis by JS Global Capital.

 Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 133,348.77
248.57M
1.06%
1399.70
ALLSHR 82,988.46
619.54M
1.12%
919.20
KSE30 40,715.96
92.00M
0.81%
328.20
KMI30 192,021.75
109.49M
0.34%
644.92
KMIALLSHR 55,621.98
344.32M
0.78%
428.01
BKTi 36,576.65
27.89M
2.09%
748.40
OGTi 28,365.03
3.58M
-0.29%
-81.31
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 109,560.00 110,525.00
107,865.00
-855.00
-0.77%
BRENT CRUDE 68.35 68.37
67.22
0.05
0.07%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
2.90
3.07%
ROTTERDAM COAL MONTHLY 106.00 0.00
0.00
0.25
0.24%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.63 67.18
65.40
-0.37
-0.55%
SUGAR #11 WORLD 16.33 16.42
16.24
-0.05
-0.31%

Chart of the Day


Latest News
July 07, 2025 at 12:59 PM GMT+05:00

PACRA maintains the entity ratings of Liberty Mills Ltd


July 07, 2025 at 12:30 PM GMT+05:00

Pakistan sets 10-year AI vision in motion


July 07, 2025 at 11:47 AM GMT+05:00

Saudi Riyal available at PKR 76.4 in open market


July 07, 2025 at 11:24 AM GMT+05:00

Trump warns of 10% tariff on BRICS-aligned nations


July 07, 2025 at 11:00 AM GMT+05:00

LSE Capital declares offer to acquire stake in PGI



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg