Urea sales expected to drop by 37%

• Urea sales are anticipated to total 390,000 tons in July 2022, down 37% from the same month last year.
• The cumulative offtake for 7MCY22 is predicted to be 3,600,000 tonnes, a 3 percent YoY increase.
• The price of urea has just increased by Rs. 350 per bag, bringing it to Rs. 2,200 per bag.

Urea sales are anticipated to total 390,000 tons in July 2022, down 37% from the same month last year (YoY).

In research by JS Global, it is predicted that Fauji Fertilizer (FFC) will sell 147,000 tons of urea, Engro Fertilizer Limited (EFERT) will offtake 88,000 tons, and Fauji Fertilizer Bin Qasim (FFBL) will offtake 23,000 tons in July 2022.

In comparison to 3,500,000 tonnes in the SPLY, the cumulative offtake for 7MCY22 is predicted to be 3,600,000 tonnes, a 3 percent YoY increase. Sales are anticipated to diminish principally as a result of decreased output brought on by the breakdown of the plants for FFC (Goth Machhi) and EFERT (Enven) in July. Urea’s closing inventory for July 2022 is around 290,000 tonnes if the monthly production of urea is assumed to be 425,000 tonnes.

The offtake of diammonium phosphate (DAP) is anticipated to be 68,000 tons in July compared to 193,000 tons in SPLY, a 65 percent YoY decline. This is probably caused by lower global demand for the commodity and higher local prices as a result of limited global supply.

The price of urea has just increased by Rs. 350 per bag, bringing it to Rs. 2,200 per bag. Dealer margins were left unaltered, but now dealers are asking for an increase in profits. There can be issues if dealers go on strike.

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