February 24, 2022 (MLN): The country’s overall nutrients offtake fell by 8% to 400,000 tonnes during January 2022 from 435,000 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 and phosphate offtake decreased by 10.6% to stand at 328,000 during January 2022. While phosphate and potash offtake went up by 5.4% and 16.4% when compared to January 2021.
The report underlined that about 881,000 tonnes of different fertilizer products were manufactured in Pakistan during the month of January 2022. The major share was of urea (69.6%) with 565,000 tonnes.
Other products were DAP (75,000 tonnes), Nitrophos (84,000 tonnes), CAN (74,000 tonnes), SOP (1,600 tonnes), SSP (5,100 tonnes) and various grades of NPK (7,000 tonnes). Total imported supplies were 57,400 tonnes comprising 55000 thousand tonnes of DAP, 1,100 thousand tonnes of SOP and 1,500 thousand tonnes of AS during January 2022.
During the first four months of the current Rabi 2021-22 (Oct-Jan), total nutrients offtake stood at 1,844,000 tonnes, depicting a decline of 5.7% as compared with the same time frame of last year. Out of this, nitrogen and phosphate offtake fell by 6.4% and 5.2%, respectively while potash offtake witnessed an upsurge of 30.7% over the corresponding period of last year.
UREA
Pakistan’s urea sales dropped by 7.8% to 598,000 tonnes in January 2022 when compared to 649,000 tonnes in the corresponding month of last year due to its availability issues.
Cumulatively, during the first four months of the current Rabi 2021-22 (Oct-Jan), urea offtake was 2,284,000 tonnes, down by 7.7% compared to the same time frame of Rabi 2020-21.
The report noted that the price of 50 kg bag of urea (sona) and urea (other) in the domestic market during the said month increased by 0.1% to Rs1,973 while the price of urea (other) decreased by 1.1% over December 2021.
In the international market, fob bulk China urea prices fluctuated around $620-875/tonne. While urea prilled bulk Middle East price was quoted at $620 to 864/tonne. The price of imported urea was in the range of Rs. 6,958 to Rs. 9,453 per 50 kg bag.
Province-wise, urea offtake decreased by 30% and 52% in Sindh and Balochistan, respectively. While both in Punjab and KPK offtakes witnessed an increase of 3%.
As per the report, Urea offtake during current Rabi 2021-22 is expected to be 3,195,000 tonnes, against the total availability of 3,489,000 tonnes, leaving behind 295 thousand tonnes of opening balance for coming Kharif 2022.
DAP
On the other hand, the sales of diammonium phosphate (DAP) were recorded at 113,000 tonnes in January 2022, up by 35% against 84,000 tonnes recorded in the same month last year due to tying up of DAP with the sale of urea NFDC report said.
During Rabi 2021-22 (Oct-Jan), DAP offtake was 792,000 tonnes, lower by 9.6% 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 10.6% to Rs9,237 when compared to Rs8,351 reported in December 2021.
In the international market, FOB DAP prices in Australia were quoted around $626-875/tonne FOB bulk while in the China market it ranged between $870-884/tonne FOB during January 2022.
Province-wise, DAP offtake during the review month rose by 23%, 94%, and 88% YoY in Punjab, Sindh, and KP, while in Balochistan offtakes were nosedived by 30%.
Going by the report, DAP availability, in the current season of Rabi 2021-22, would be around 1,174,000 tonnes, which includes 353,000 tonnes of opening inventory, 385,000 tonnes of imported supplies and domestic production of 436,000 tonnes. Meanwhile, the expected DAP offtake during the current Rabi season is about 945,000 tonnes, leaving a closing balance of 236,000 tonnes for the next Kharif season.
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