Mettis Global News
Mettis Global News

Urea, DAP sales fall 26% in Sep

Urea
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp

October 17, 2024 (MLN): Fertilizer sales, including urea and DAP, fell 25.7% compared to last year amid weak agronomic conditions during September 2024, according to monthly report issued by the National Fertilizer Development Company (NDFC).

The sales fell to 499,000 tonnes compared to 672,000 tonnes in the same month of last year.

Urea offtake fell 35.3% to 365,000 tonnes as against 564,000 tonnes in September 2023.

While DAP sales increased 24.1% to 134,000 tonnes compared to a sale of 108,000 tonnes in the same month of last year.

Cumulative urea offtake from April to September was 2.746 million tonnes against the projected demand of 3.442m tonnes i.e., 21% less.

The decline in offtake may be attributed to economic recession due to low wheat prices and a significant reduction in cotton acreage in Punjab (20%) and Sindh (12%), the report noted.

Total availability of urea was 3.391m tonnes with domestic production of 3.217m tonnes and 174,000 tonnes of carryover stock.

Urea offtake during Kharif 2024 was 2.746m tonnes with a closing balance of 622,000 tonnes.

Availability of DAP during Kharif 2024 was 1.022m tonnes, comprising 78,000 tonnes opening stock, 503,000 tonnes imported supplies, and 441,000 tonnes domestic production.

DAP demand was 642,000 tonnes. A handsome stock of 384,000 tonnes will ensure smooth supplies during first half of Rabi 2024-25.

Supply/Demand Situation

Total urea availability during September 2024 was 985,000 tonnes, which comprised 406,000 tonnes of previous month leftover and 579,000 tonnes domestic production.

Urea offtake during September 2024 was 365,000 tonnes, leaving a closing balance of 622,000 tonnes.

Total availability of DAP during September 2024 was 517,000 tonnes, which included 232,000 tonnes stock of previous month, 211,000 tonnes of imported supplies, and 74,000 tonnes domestic production.

Its offtake was 134,000 tonnes leaving closing balance of 384,000 tonnes.

Domestic prices

Price of urea (other), urea(sona), and CAN decreased by 2.3, 2.1, and 1.6%, respectively.

Prices of phosphate fertilizer products i.e., SSP, NP, and DAP increased by 1.2, 0.7, and 0.2%, respectively.

The average price of urea (sona), urea (other), and DAP was Rs4,644, Rs4,497, and Rs11,820 per 50 kg bag, respectively.

International prices

Price of urea in China market decreased by $31 per tonne during September 2024 while it increased by $15 per tonne in Arabian Gulf.

Urea prices were quoted as $266-289 and $330-361 per tonne FOB bulk for China and Arabian Gulf, respectively.

Prices of DAP remained stable during September, 2024.

DAP prices were in the range of $610-645 per tonne FOB bulk in Australia and $615-620 per tonne FOB in China.

MAP and TSP bulk prices were $580-612 and $495-510 per tonne FOB, respectively.

Ex-Karachi price of imported urea ranged between Rs5,142 and Rs6,632 per 50 kg bag, while the price of imported DAP (China) was in the range of Rs11,064 to Rs11,146 per 50 kg bag.

Nutrient Offtake

Total nutrient offtake during September 2024 was 289 thousand tonnes, which decreased by 25.3 per cent over September 2023.

Nitrogen offtake decreased by 33.4 per cent, while phosphate and potash offtake increased by 9.4 and 28 per cent, respectively.

Copyright Mettis Link News

Posted on: 2024-10-17T17:55:54+05:00