Fertilizer offtake rises by 32.6% YoY in July’23

August 24, 2023 (MLN): The country’s overall nutrient offtake increased by 32.6% YoY to 411,000 tons during July 2023, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed.

Among the nutrients, nitrogen and potash offtake increased by 31.2, 39.2, and 58% YoY respectively.

During Kharif 2023, cumulative nutrient offtake (April-July) was 1,442,000 tons, which increased by 1.8% over the same time frame of Kharif 2022.

Nitrogen offtake increased by 2.4% whereas potash offtake decreased by 31.1% compared with April-July 2022.

Urea, DAP

In product terms, total Urea offtake during the month of July was 629,000 tons, which increased by 36% YoY while DAP offtake was 113,000 tons, which increased by 67.7% YoY over July 2022, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed.

Total urea availability during July 2023 was 805,000 tons, which comprised 215,000 tons of the previous month's leftover and domestic production of 589,000 tons.

While the total availability of DAP during July 2023 was 348,000 tons comprising 275,000 tons of opening inventory and 73,000 tons of local production, leaving a surplus of 235,000 tons for August 2023.

Domestic prices

The prices of nitrogenous fertilizers increased as compared with the previous month. The price of urea sona and other brands of urea respectively increased by 8.2 and 10.5% MoM.

Prices of phosphatic fertilizers such as DAP, NP, and SSP (G) decreased by 3.3, 5.6, and 5.9% MoM.

International prices

An increasing trend in prices of almost all fertilizers in the international market was noted during the month under review.

FOB bulk China urea price was quoted as $299-380 per ton during July 2023.

Arabian Gulf prilled urea price ranged between $285-380 per ton FOB.

DAP prices during July 2023 were in the range of $439-538 per ton FOB bulk in Australia and $420-455 per ton FOB in China market.

Ex-Karachi price of imported urea NFDC Street No.1, Sector H-8/1, Islamabad 3 was estimated in the range of Rs5,490 - 6,995 per 50 kg bag, while the price of imported DAP was estimated in the range of Rs7,755 - 9,899 per 50 kg bag.

Fertilizer production and imported supplies

Production of all fertilizer products during July 2023 was 805,000 tons.

Out of this, urea production was about 589,000 tons (73.2% share in total production). Other products were: DAP 73,000 tons, CAN 72,000 tons, NP 64,000 tons, SSP 5,500 tons, and SOP 1,500 tons.

Imported supplies comprised 7,000 tons including 300 tons of NP, 2,000 tons of SOP, 900 tons of MOP, and 3,800 tons of AS during July 2023.

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