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Fertilizer offtake increases by 7.7% YoY in February

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March 28, 2022 (MLN): The country’s overall nutrients offtake increased by 7.7% to 334,000 tonnes during February 2022 from 310,000 tonnes in 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 offtake increased by 18% to stand at 287,000 during February 2022. While phosphate and potash offtake went down by 29.7% and 29% when compared to February 2021.

The report underlined that about 743,000 tonnes of different fertilizer products were produced in Pakistan during the month of February 2022. The major share was of urea (70%) with 520,000 tonnes.

Other products were DAP (70,000 tonnes), Nitrophos (72,000 tonnes), CAN (68,000 tonnes), SOP (1,500 tonnes), SSP (4,500 tonnes) and various grades of NPK (7,000 tonnes). Total imported supplies were 67,000 tonnes comprising 50,000 tonnes of urea, 16,000 tonnes of DAP 600 tonnes of SOP and a small quantity of MOP i.e. 10 tonnes during February 2022.

During the first six months of the current Rabi 2021-22 (Oct-Feb), total nutrients offtake stood at 2,178,000 tonnes, depicting a decline of 3.8% as compared with the same time frame of last year. Out of this, nitrogen and phosphate offtake fell by 2.9% and 7.9%, respectively while potash offtake witnessed an upsurge of 18.1% over the corresponding period of last year.

UREA

The country’s urea sales increased by 29.7% to 527,000 tonnes in February 2022 when compared to 406,000 tonnes in the corresponding month of last year.

Cumulatively, during the first five months of the current Rabi 2021-22 (Oct-Feb), urea offtake was 2,811,000 tonnes, down by 2.4% compared to the same time frame of Rabi 2020-21.

The report noted that the price of 50 kg bag of urea (sona) in the domestic market during the said month remained the same at Rs1,973 while the price of urea (other) decreased by 0.9% over January 2022.

In the international market, the price of Fob bulk China urea price was quoted at $540-620/tonne in February 2022. Fob bulk Middle East prices were reported at $550-650 per tonne. DAP Australia (Bulk) prices were seen in the range of $872-875/tonne. The price of imported urea was in the range of Rs6,149 to Rs7,220 per 50 kg bag.

Province-wise, urea offtake increased in Punjab, Sindh, and KP by 17%, 114% and 19%, respectively. Its offtake decreased by 20% in Balochistan as compared with the previous year.

Kharif 2022 is expected to begin with 294,000 tonnes of opening inventory. Total available urea would be about 3,087,000 tonnes including 2,794,000 tonnes of domestic production. Offtake is estimated at around 3,364,000 tonnes. Thus, there will be a shortage of 277,000 tonnes at the end of the season. It is assumed that LNG based plant of FatimaFert and Agritech will remain closed throughout Kharif, 2022.

DAP

On the other hand, the sales of diammonium phosphate (DAP) decreased by 37.9% to 55,000 tonnes in February 2022, against 89,000 tonnes recorded in the same month last year. This decrease in DAP offtake is due to high prices of DAP in the international and accordingly in the domestic market.

During Rabi 2021-22 (Oct-February), DAP offtake was 847,000 tonnes, lower by 12.2% compared to the same time frame of Rabi 2020-21.

The report stated that the price of a 50 kg bag of DAP in the domestic market during the said month increased by 1.2% to Rs9,347 when compared to Rs9,237 reported in January 2022.

In the international market, DAP prices in China ranged between $870-902/tonne fob bulk. The price of imported urea was in the range of Rs6,149 to Rs7,220 per 50 kg bag, while that of DAP ranged from Rs8,654 to Rs8,949 per 50 kg bag during January 2022.

Province-wise, DAP offtake during the review month declined by 38%, 30%, 67% and 28% in Punjab, Sindh, KP and Balochistan, respectively as compared to February 2021.

Going by the report, DAP availability during Kharif 2022 would be about 675,000 tonnes which includes 255,000 tonnes of opening inventory and 420,000 tonnes of domestic production. The total demand for DAP is estimated at around 1,008,000 tonnes. The supply-demand gap will be filled by imports through the private sector.

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Posted on: 2022-03-28T16:24:34+05:00

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