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CPI Preview: Inflation to fall below 14% YoY in May

Fertilizer offtake surges 44.9% YoY in March’24 due to low base

Fertilizer offtake drops 6.3% YoY in April 2024
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April 18, 2024 (MLN): The country’s overall nutrient offtake surged 44.9% YoY to 436,000 tons during March 2024 as compared to an offtake of 301,000 tons in 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, and Phosphate offtake increased significantly by 40.5% and 84.4%, while potash offtake dropped 9.2% on a year on year basis.

  Mar-24 Mar-23 Change %
Nitrogen 366 260 40.5%
Phosphate 66 36 84.4%
Potash 4.2 4.6 -9.2%
Total 436 301 44.9%

Amount in,000 Tons

Urea, DAP

Product-wise, Urea offtake during March 2024 was 671,000 tons, which rose by 37.1% over March 2023.

DAP offtake was 107,000 tons, 2.08x higher than in March last year. 

  Mar-24 Mar-23 Change %
Urea 671 489 37.1%
DAP 107 51 108%

Amount in,000 Tons

Cumulative Fertilizer Offtake during Rabi 2023-24

Cumulative nutrient offtake during Rabi 2023-24 (Oct-March) was 2,535,000 tons, which increased by 4.8% over Rabi 2022-23.

Nitrogen offtake increased by 2.3% while phosphate and potash offtake increased by 15%.

Urea offtake during Rabi 2023-24 (Oct-March) was 3,525,000 tons (1.6% more than Rabi 2022-23) whereas DAP offtake was 874,000 tons (23.1% higher than Rabi 2022-23).

Supply/Demand Situation

Total urea availability during March 2024 was 845,000 tons, which comprised 270,000 tons of previous month leftover and 575,000 tons domestic production.

Urea offtake during March 2024 was 671,000 tons, leaving a closing balance of 174,000 tons.

Total availability of DAP during March 2024 was 185,000 tons, which included 89,000 tons stock of previous month, 20,000 tons of imported supply, and 76,000 tons domestic production.

Its offtake was 107,000 tons leaving a closing balance of 78,000 tons.

Domestic prices

Prices of nitrogenous fertilizers increased while that of phosphate decreased during March 2024.

Price of urea (sona), urea (other) and CAN increased by 3.9, 3.2, and 11.6%, respectively during March 2024 as compared with the previous month.

The prices of DAP and NP decreased by 0.4 and 1.4%, respectively over February, 2024.

There was a slight increase in prices of SOP and various grades of NPKs by 0.3 and 0.6%, respectively.

The average price of urea (sona), urea (other), and DAP was Rs4,875, Rs4,587, and Rs12,347 per 50 kg bag, respectively

International prices

Declining trend in Urea prices in both China and Arabian Gulf was observed during March 2024.

Urea prices were quoted as $305-342 and $320-380 per ton FOB bulk for China and Arabian Gulf, respectively.

DAP prices were in the range of $525-693 per ton FOB bulk in Australia and $570-605 per ton FOB in China.

MAP and TSP bulk prices were $504-520 and $400-440 per ton FOB, respectively.

Ex-Karachi price of imported urea ranged between Rs5,763 to 6,942 per 50 kg bag, while price of imported DAP (China) was in the range of Rs10,591 to 11,166 per 50 kg bag.

Copyright Mettis Link News

Posted on: 2024-04-18T15:24:27+05:00