According to the provisional fertilizer sales data, the offtake of urea, a key nitrogen fertilizer, increased by 36% year-on-year to 629,000 tons in July 2023, compared to 463,000 tons in the same month last year.

The growth was attributed to low base effect, as urea sales were lower in July 2022 due to Eid holidays and higher rainfall. On a monthly basis, urea sales also rose by 3% in July 2023, as farmers anticipated further hike in urea prices.

Among the major urea producers, Engro Fertilizers Limited (EFERT) recorded the highest increase in urea sales, which surged by more than three times year-on-year to 266,000 tons in July 2023. Fauji Fertilizer Company Limited (FFC) and Fauji Fertilizer Bin Qasim Limited (FFBL) combined sold 238,000 tons of urea, up by 40% year-on-year. However, Fatima Fertilizer Company Limited (FATIMA) witnessed a decline of 9% year-on-year in its urea sales, which stood at 91,000 tons in July 2023.

In the first seven months of 2023 (7MCY23), the cumulative urea sales showed a marginal increase of 1% year-on-year to 3.73 million tons. EFERT’s urea offtake grew by 10% year-on-year to 1.3 million tons during 7MCY23. FFC and FFBL’s combined urea sales dropped by 2% year-on-year to 1.67 million tons during the same period. FATIMA’s urea sales also fell by 20% year-on-year to 437,000 tons during 7MCY23.

On the other hand, the sales of di-ammonium phosphate (DAP), a major phosphorus fertilizer, rose by 69% year-on-year to 113,000 tons in July 2023, due to low base effect. However, on a monthly basis, DAP sales fell by 28% in July 2023, owing to higher DAP prices. As a result, DAP offtake during 7MCY23 decreased by 3% year-on-year to 633,000 tons.

On a company-specific basis, FFC and FFBL sold 85,000 tons of DAP in July 2023, up by 115% year-on-year, but down by 12% month-on-month. EFERT’s DAP sales increased by 13% year-on-year and by more than double month-on-month to reach 26,000 tons in July 2023. During 7MCY23, FFC and FFBL’s DAP offtake reached 409,000 tons, up by 2% year-on-year. EFERT’s DAP offtake during the same period amounted to 108,000 tons, down by 20% year-on-year.

By the end of July 2023, the urea inventory stood at 175,000 tons, lower than the inventory level of 215,000 tons in June 2023. The DAP inventory was recorded at 234,000 tons as of July 2023.