November 24, 2022 (MLN): The country’s overall nutrient offtake fell by 50.3% YoY to 280,000 tonnes during October 2022 compared to the same month last year, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed.
“This decrease in offtake is due to heavy rains/floods and the high price of DAP fertilizer in the domestic market”, the report added.
Among the nutrients, nitrogen and phosphate offtake decreased by 34.1% YoY and 77.8% YoY respectively during October 2022. While Potash offtake also moved down by 84% over October 2021.
The report underlined that about 720,000 tonnes of fertilizer products were produced in Pakistan during the month of October 2022. The major share was urea with 468,000 tonnes.
Other products were DAP (77,000 tonnes), Nitrophos (85,000 tonnes), CAN (75,000 tonnes), SSP (9,800 tonnes), SOP (1,200 tonnes), and various grades of NPK (5,000 tonnes). Total imported supplies were 140,000 tonnes comprising 103,000 tonnes of urea, 27,500 tonnes of DAP, 9,000 tonnes of SOP, and 960 tonnes of AS during October 2022.
The total industry urea offtake stood at 429,643 tonnes in October 2022, showing a decline of 16.4% when compared to October 2021.
During October 2022, Fauji Fertilizer Company Limited (FFC), Engro Fertilizer (EFERT), Fatima Group, Agritech Limited (AGL), and Urea offtake fell by 8.8%, 39.9%, 5.0%, and 8.5% respectively as the company to October 2021.
On the other side, Pak Arab fertilizers limited, Fauji Fertilizer bin Qasim Limited (FFBL) urea offtake increased by 2.8% and 8.5% over October 2021.
At present, the total urea stock available in the fertilizer industry is 449,463 tonnes which are increased by 52.9% MoM during October 2022.
“Closing inventory of urea from December 2022 to February 2023 is expected to remain below 200,000 tonnes which reflects a tight situation regarding its availability at dealer price”, the report added.
Meanwhile, the average price of a 50 kg bag of urea (sona) urea (other), SSP (G), CAN, and NPKs in the domestic market during the said month jumped by 0.3%, 0.4%, 0.5%, 3.3%, and 0.2%, respectively over September 2022.
In the international market, Fob bulk China urea price was quoted at $580-624/t during Oct’22. Arabian Gulf bulk urea was set at $600-633/t.
As per the report, the total diammonium phosphate (DAP) offtake during October 2022 was 71,459 tonnes decreased by 79.1% YoY against 342,287 tonnes recorded in the same month last year.
In October 2022, FFC and EFERT DAP offtake decreased by 2.0% and 0.1% MoM, while year on year it decreased by 88.9% and 71.2% compared to the same month last year.
On the other side, FFBL DAP offtake increased by 75.6% MoM while year on year it fell by 71.8%.
“Situation regarding DAP looks satisfactory as other phosphate fertilizers like NP, MAP, SSP, and NPKs will also be available in the market to meet phosphate demand”, the report added.
At present, the total DAP stock available in the fertilizer industry is 492,965 tonnes which is increased by 7.1% MoM during October 2022.
The price of a 50 kg bag of DAP in the domestic market during the said month decreased by 0.02% MoM, it added.
In the international market, DAP prices were in the range of $710-771/t fob bulk in Australia and $700-735/t fob in China market.
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Posted on: 2022-11-24T17:10:13+05:00