DAP offtake increases 49% YoY in October

November 24, 2021 (MLN): Amid an upward trend in prices and uncertainty in supply, the sales of diammonium phosphate (DAP) jumped by 49.2% to stand at 342,000 tonnes in October 2021 against 229,000 tonnes recorded in the same period last year (SPLY), according to the data published by National Fertilizer Development Company (NFDC) on Wednesday.

The report stated that all fertilizer products witnessed an upsurge in prices during October 2021 as opposed to the previous month. The price of a 50 kg bag of DAP in the domestic market during the said month increased by 6.6% to Rs6,917 when compared to September 2021.

In the international market, the DAP prices were referred at US$ 626-670/t fob bulk in Australia and US$635-638/t in China.

Province-wise, DAP offtake increased by 61%, 21%,70% and 7% in Punjab, Sindh, KP and Balochistan.

Company-wise data shows that DAP sales of Fauji Fertilizer Company (FFC) and Fauji Fertilizer Bin Qasim Limited (FFBL) were recorded at 49,291 tonnes each. However, FFBL saw a 62% YoY/50% MoM decline in October 2021.

Meanwhile, the sales of Engro Fertilizer posted 68.5% YoY/ 29% MoM growth in the month under review to clock in at 66,649 tonnes.

Outlook

During Rabi 2021-22, the total availability of DAP would be around 1,086,000 tonnes, which comprises of 356,000 tonnes of imported supply, 377,000 tonnes of domestic production and 353,000 tonnes of opening stock.

The offtake of DAP is estimated at around 1,003,000 tonnes. Given the availability of other phosphate fertilizers like NP, MAP, SSP and NPKs in the market, the situation, according to the report, looks satisfactory for DAP.

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