Fertilizer offtake declines by 4.8% YoY in June'23

July 26, 2023 (MLN): The country’s overall nutrient offtake fell by 4.8% YoY to 460,000 tonnes during June 2023 compared to the same month last year, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed.

Among the nutrients, nitrogen and potash offtake decreased by 10.4% YoY and 73% YoY respectively, while phosphate offtake increased by 25.6% YoY during June 2023.

The report underlined that about 750,000 tonnes of fertilizer products were produced in Pakistan during the month of June 2023. The major share was urea with 548,000 tonnes with a share of 73.1%.

Other products were DAP (51,000 tonnes), CAN (73,000 tonnes), Nitrophos (68,000 tonnes), SSP (8300 tonnes), and SOP (1,600 tonnes).

Total imported supplies were 51,500 comprising 50,000 tonnes DAP, and 1,000 tonnes AS and 500 tonnes SOP.

Urea, DAP

In product terms, urea offtake was 610,000 tonnes, which decreased by 17.2% YoY while DAP offtake was 158,000 tonnes, which increased by 8.7% YoY over June 2022.

The closing balance of Urea offtake was 215,000 tonnes, while for DAP it was 275,000 tonnes.

The total availability of DAP during June 2023 was 433,000 tonnes comprising 333,000 tonnes of opening inventory, 50,000 tonnes of imported supplies, and 51,000 tonnes of local production.

Total urea availability during June 2023 was 826 thousand tonnes, which comprised 277,000 tonnes of the previous month's leftover and domestic production of 548,000 tonnes.

Domestic prices

Prices of all fertilizer products decreased during June 2023, prices of urea sona, urea other,

DAP and SOP respectively decreased by 1.2%, 2.2%, 5.6%, and 5% as compared with the previous month.

The price of NP and NPK’s decreased by 2% each, while, the price of SSP and CAN decreased by 1.5% each as compared with the previous month.

International prices

In the international market, FOB prices for China bulk urea and Middle East bulk urea were $280-310 per tonne and $260-300 per tonne, respectively.

DAP prices were in the range of $439-486/t FOB bulk in Australia and $445-475/t FOB in China market.  

Ex-Karachi price of imported urea ranged between Rs4,978 and 5,750 per 50 kg bag and that of DAP ranged between Rs7,630 and 8,471 per 50 kg bag.

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