Pakistan Fertilizer_Nutrients offtakes witnessed seasonal decline, (AKD Daily, Feb 23, 2024)
Pakistan Fertilizer: Nutrients offtakes witnessed seasonal decline
- Urea sales in Jan'24 totaled 613k tons, a decline of 2.4%MoM as the Rabi sowing season draws to close. Annually, urea offtakes decreased by 2.9%, attributed to a high base in SPLY when the government-led imports flooded the market, ultimately accounting for 22% market share.
- FFC, the largest manufacturer, witnessed a 2.2%MoM/8.5%YoY increase in offtakes to 234k tons. On the other hand, EFERT's monthly offtakes remained flat at 210.4k tons.
- DAP sales continued their downward trend, with total offtakes amounting to 66.8k tons (↓30%YoY), due to overall deterred demand amid prevalent higher prices.
- FFBL has responded the gas price hike with increasing urea prices from PkR5,489/bag from PkR4,072 in Dec'23. In contrast, EFERT and FFC currently maintain urea prices at PkR3,767/bag.
- Although EFERT and FFC have not yet raised urea prices, we expect both companies will adjust prices within the range of PkR1,250-1,300/bag. With only EFERT’s production cost only impacted by 60%, increase to the said levels would be incrementally beneficial to the company.
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