December 26, 2021 (MLN): Pakistan’s urea sales increased by 7.7% to 574,000 tonnes in November 2021 when compared to 533,000 tonnes in the corresponding month of last year, as per the data released by the National Fertilizer Development Company (NFDC).
The report noted that the prices of all fertilizer products witnessed an upsurge during November 2021 as opposed to the previous month. The price of 50 kg bag of urea (sona) and urea (other) in the domestic market during the said month increased by 11.5% and 9.5% to Rs2,058 and Rs1,974, respectively over October 2021.
In the international market, fob bulk China urea prices fluctuated around $630-1,000/t. Middle East bulk urea price was quoted at $755-973/t fob.
Province-wise, urea offtake increased by 14% and 3% in Punjab and Sindh, respectively. each. While it observed a decline of 23% and 25% in KP and Balochistan, respectively.
Outlook for Rabi 2021-22
The Rabi 2021-22 season started on a positive note with an opening inventory of 116,000 tonnes of urea. Domestic production of urea during Rabi 2021-22 is estimated at around 3,040,000 tonnes. Thus, the total availability of urea will be around 3,156,000 tonnes. Offtake is estimated at around 3,195,000 tonnes depending upon the present trend of fertilizer consumption.
The closing inventory from December 2021 onward reflects shortage. The report stated that government should ensure the provision of additional gas to the FFBL plant and the running of two RLNG based plants during the entire Rabi season to combat shortage.
