DAP offtake plunges by 38% YoY in November

December 26, 2021 (MLN): The sales of diammonium phosphate (DAP) witnessed a decline of 38.4% to stand at 220,000 tonnes in November 2021 against 357,000 tonnes recorded in the same period last year (SPLY) on an account of its higher prices, the monthly data published by National Fertilizer Development Company (NFDC) said.

The report stated that prices of all fertilizer products increased during November 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 16% to Rs8,015 when compared to Rs6,917 reported in October 2021.

In the international market, DAP prices during November 2021 were quoted at $626-670/t fob bulk in Australia and $750-753/t fob in China market.

Province-wise, DAP offtake plunged by 36%, 48%, 49%, and 15% in Punjab, Sindh, KP, and Balochistan, respectively.

Outlook

Rabi 2021-22 started with 353,000 tonnes of opening inventory of DAP. The domestic production estimates are 381,000 tonnes while the total planned imports are 355,000 tonnes. This will make the total availability of DAP at 1,089,000 tonnes against the estimated demand of 1,003,000 tonnes. The report noted that the availability of DAP appears to be comfortable in the coming months.

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