January 28, 2023 (MLN): The country’s overall nutrient offtake rose by 44.7% YoY to 590,000 tonnes during December 2022 compared to the same month last year, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed.

In the first six months of the fiscal year 2023, the total nutrient offtake was recorded at 4,918,073 tonnes. Accordingly, in 6MFY23 urea and DAP offtake stood at 3,368,993 tonnes, and 621,139 tonnes, respectively.

“Total nutrient offtake during first three months of the current Rabi 2022-23 (October-December) decreased by 6.3% YoY as compared with same time frame of last Rabi”, the report noted.

Among the nutrients, nitrogen and phosphate offtake increased by 45.1% YoY and 52.3% YoY respectively during December 2022. However, potash offtake moved down by 91.6% over December 2021.

The report underlined that about 763,000 tonnes of fertilizer products were produced in Pakistan during the month of December 2022. The major share was urea with 576,000 tonnes.

Other products were DAP (31,000 tonnes), Nitrophos (75,000 tonnes), CAN (73,000 tonnes), SSP (7,000 tonnes). Total imported supplies were 194,000 tonnes comprising 193,000 tonnes of urea, 20 tonnes of DAP, and 500 tonnes of MAP during December 2022.

UREA

The total industry urea offtake stood at 833,000 tonnes in December 2022, recorded an increase of 39.2% when compared to December 2021.

The cumulative urea offtake in first three months of (Rabi 2021-2022) from October to December clocked in at 1,846,000 tonnes which increased by 9.4% YoY.

During December 2022, Fauji Fertilizer Company Limited (FFC PAK SAUDI), Fatima Fertilizer bin Qasim Limited, Fatima Fertilizer Limited, PAK-ARAB, Engro Fertilizer (EFERT), Agritech Limited (AGL) Urea offtake up by 2.77%, 22.89%, 7.52%, 1.93%, 54.76%, and 8.41% respectively as the company to December 2021.

“Total urea availability during December 2022 was about 1,083,000 tonnes, which included an opening balance of 314,000 tonnes and domestic production of 576,000 tonnes”, according to report.

During December 2022, the prices of urea (sona) and urea (other) increased by 3.5% and 2.9%, as compared to November 2022.

In the international market, Fob bulk China urea price was quoted at $460-545/t during December 2022. Arabian Gulf bulk urea was set at $465-515/t.

Ex-Karachi price of imported urea was in the range of Rs6434 to Rs7464 per 50 kg bag.

Rabi 2022-23 started with an opening balance of 294,000 tonnes of urea. Domestic production during Rabi 2022-23 is estimated to be around 2,971,000 tonnes.

The imported supply comprises 296,000 tonnes. Urea offtake during the current Rabi 2022-23 will be about 3,265,000 tonnes, against the total availability of 3,562,000 tonnes, leaving a closing balance of 311,000 tonnes for the next Kharif 2023 season.

DAP

As per the report, the total diammonium phosphate (DAP) offtake during December 2022 was 158,000 tonnes increased by 35.2% YoY against 236,405 tonnes recorded in the same month last year.

“Increase in offtake of DAP is due downward trend of its price and low offtake was observed in previous year”, the report added.

The prices of DAP in Australia ranged between $612-675/t. The price of DAP China bulk was in the range of $685-720/t. Ex-Karachi price of imported DAP was in the range of Rs8,235 to Rs9,330 per 50 kg bag during December 2022.

The price of a 50 kg bag of DAP in the domestic market during the said month decreased by 11.3% MoM, it added.

The price of other fertilizers such as NP, SSP(G), SOP, and NPK’s decreased by 14.8%, 10.1%, 2.9%, and 1.1% MoM, respectively.

While prices of CAN slightly increased by 0.2%, compared with the previous month.

DAP availability in the current Rabi season 2022-23 would be around 1,028,000 tonnes, which includes 460,000 tonnes of opening inventory, 267,000 tonnes of imported supplies, and domestic production of 301,000 tonnes.

The expected offtake of DAP during the current Rabi season is about 724,000 tonnes, leaving a balance of 303,000 tonnes for the next Kharif season.

Copyright Mettis Link News

Posted on: 2023-01-28T21:51:15+05:00