May 10, 2024 (MLN): The seasonal factor has resulted in a major blow to Pakistan's Fertilizer sector as urea sales plunged to a 3-year low of 328,000 tonnes in April 2024.
This translates to a drastic drop of 51% compared to 671,000 tonnes sold in the previous month.
Furthermore, year-on-year comparisons reveal a 20% decline from the 408,000 tonnes sold in April 2023.
On the other hand (4MCY24), cumulative data showcases a 6% YoY growth in urea offtake to clock in at 2.155 million tonnes, as in the same period last year, sales stood at 2.032m tonnes.
The seasonal shift also spread its hazards on the sector's other components, with DAP, CAN and NP sales contracting by 13%, 58% and 10% MoM, respectively.
According to the company-wide offtake data compiled by Arif Habib Limited, Fatima Fertilizer (FATIMA) was the one to lead the drop as sales contracted by 66% MoM and 50% YoY.
Among industry players, Fauji Fertilizer (FFC) and Fauji Fertilizer Bin Qasim (FFBL), the dominant group in the sector, experienced the smallest decline of 12% MoM.
Meanwhile, Engro Fertilizers (EFERT) accounted for 76,000 tonnes of overall urea sales, while National Fertilizer Marketing (NFML) contributed 1,000 tonnes to the total.
