Fertilizer offtake increases by 3.2% YoY in May

June 22, 2023 (MLN): The country’s overall nutrient offtake rose by 3.2% YoY to 312,000 tonnes during May 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 offtake increased by 9.6% YoY, while phosphate, and potash decreased by 20.3% YoY, and 35.7% YoY respectively during May 2023.

The report underlined that about 714,000 tonnes of fertilizer products were produced in Pakistan during the month of May 2023. The major share was urea with 493,000 tonnes with a share of 69%.

Other products were DAP (74,000 tonnes), CAN (72,000 tonnes), Nitrophos (62,000 tonnes), SSP (7,200 tonnes), NPKs (4,000 tonnes), and SOP (1,600 tonnes).

Total imported supplies were 36,000 comprising 34,000 tonnes DAP, and 1,000 tonnes AS.

Urea, DAP

In product terms, urea offtake was 459,000 tonnes, which increased by 10% YoY while DAP offtake was 66,000 tonnes, which decreased by 30.1% YoY over May 2022.

Urea offtake during May 2023 was 459,000 tonnes. The closing balance was 277,000 tonnes.

The total availability of DAP during May 2023 was 394,000 tonnes comprising 285,000 tonnes of opening inventory, 34,000 tonnes of imported supplies, and 74,000 tonnes of local production.

DAP offtake was 66,000 tonnes. The closing balance was 333,000 tonnes.

Domestic prices

During May 2023, prices of mostly fertilizers except for nitrogenous fertilizer (urea’s and SSP) decreased during the month under review as compared with the previous month.

Prices of urea sona, urea other, and SSP increased by 2.7%, 3.4%, and 1.4% YoY during May 2023 as compared with the previous month.

Prices of DAP, NP and SOP decreased by 2.4%, 3.5% and 2.1% YoY, respectively.

International prices

In the international market, FOB prices for China bulk urea and Middle East bulk urea were $315-345 per tonne and $315-330 per tonne, respectively.

DAP prices were in the range of $460-532/t FOB bulk in Australia and $480-520/t FOB in China market.

Ex-Karachi price of imported urea ranged between Rs5,807 and 6,268 per 50 kg bag and that of DAP ranged between Rs8,051 and 9,128 per 50 kg bag.

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