June 23, 2022 (MLN): The country’s overall nutrients offtake dropped by 21.8% to 302,000 tonnes during May 2022 compared to the same month last year, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed today.
Among the nutrients, nitrogen, and phosphate offtake decreased by 18.5% YoY and 32.9% YoY to stand at 239,000, and 60,000 tonnes, respectively during May 2022. While Potash offtake also moved down by 19.1% over May 2021.
The drop in DAP offtake is due to high prices in both domestic and international markets, the report underlined.
The report further highlighted that about 805,000 tonnes of different fertilizer products were produced in Pakistan during the month of May 2022. Out of this, urea has the major share of 70% with 563,000 tonnes.
Other products were DAP (79,000 tonnes), Nitrophos (78,000 tonnes), CAN (70,000 tonnes), SOP (1,800 tonnes), SSP (8,000 tonnes) and various grades of NPK (5,000 tonnes). Total imported supplies were 47,000 tonnes comprising 44,000 tonnes of DAP, 2,400 tonnes of SOP, and a small quantity of AS i.e., 500 tonnes during May 2022.
The total sales of urea stood at 418,000 tonnes, which decreased by 16.7% over May 2021.
Total urea availability during May 2022 was 881,000 tonnes, which comprised 318,000 tonnes of the previous month's leftover and domestic production of 563,000 tonnes. Urea offtake during May 2022 was 418,000 tonnes. Thus, the closing balance is worked out to be 467,000 tonnes.
As per the report, the high price of DAP has resulted in increased usage of urea and other nitrogenous fertilizers.
Meanwhile, the price of a 50 kg bag of urea (sona) in the domestic market during the said month jumped by 2.7% MoM to Rs2,152 while the price of urea (other) went up by 2.4% to Rs2,046 over April 2022.
In the international market, Fob bulk China urea price during May 2022 fluctuated in the range of US $ 630-690/t fob bulk. Middle East fob bulk urea price was in the range of US$ 656-725/t. Ex-Karachi price of imported urea was in the range of Rs7,770 to Rs8,800 per 50 kg bag.
Province-wise, urea offtake declined in Punjab, KP, and Balochistan by 23%, 16%, and 69% respectively, as compared with May 2021. On the other hand, its offtake increased by 23% in Sindh over the same period the previous year.
Outlook for Kharif 2022
Urea availability during Kharif, 2022 is estimated to be around 3,681,000 tonnes comprising 200,000 tonnes of previous season left over, local production of 3,281,000 tonnes, and imported supply of 200,000 tonnes.
Total urea offtake is projected to be around 3,402,000 tonnes during Kharif, 2022. Thus, there will be 281,000 tonnes of reserve stock for next Rabi 2022-23, the report added.
The sales of diammonium phosphate (DAP) witnessed a significant drop of 45.5% to 94,383 tonnes in May 2022, against 173,233 tonnes recorded in the same month last year.
The report stated that the price of a 50 kg bag of DAP in the domestic market during the said month edged up by 3.3% to Rs9,703 when compared to Rs9,396 reported in April 2022.
In the international market, the price of Fob bulk China urea was quoted at $ 630-690/t. Middle East bulk urea was at $ 656-725/t. DAP prices were in the range of $1010-1120/t fob bulk in Australia and $980-1050/t fob in China market.
Ex-Karachi price of imported urea was in the range of Rs7,770 to 8,800 per 50 kg bag and DAP was in a rage of Rs. 10,744 to 12,390 per 50 kg bag.
Province-wise, DAP offtake during the review month moved down in Punjab, Sindh, Balochistan, and KP by 46%, 37%, 57%, and 59%, respectively over May 2021.
As per the report, Kharif, 2022 started with an opening balance of 276,000 tonnes. Domestic production during the season is estimated to be 434,000 tonnes and imported supplies will be around 154,000 tonnes. Thus, the total availability of DAP will be around 864,000 tonnes.
The demand for DAP during Kharif, 2022 is estimated at around 877,000 tonnes. A reasonable quantity of NP, SSP, and other phosphatic fertilizers would also be available to meet the demand of Kharif 2022.
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