Urea off-take declines 43% YoY in June

Author: Staff Report

Urea off-take for the month exhibited an increase of 23 percent month-on-month (MoM) and 43 percent year-on-year (YoY) decline to cumulatively clock in at 608000 tons, from 493000 tons in May 2018 and 1,059000 tons in June 2017.

According to the National Fertilizer Development Centre (NFDC) released the fertiliser offtake’s data for June 2018, DAP offtake has shown a staggering increase of 223 percent MoM and 70 percent YoY to cumulatively clock in at 189000 tons.

Urea off-take has been rising due to Kharif season kicking-in, however the decline in YoY numbers can be attributed to higher dealer inventories since they had hoped to take advantage of lower fertiliser prices in the earlier part of the year, said an analyst at Shajar Research.

Cumulatively, urea off-take has remained flat for 6 months 2018 when compared with 6 months 2017 at 2,730000 tons. DAP off-take on the other hand has exhibited an increase of 16 percent YoY in six months 2018 with Fauji Fertiliser Company (FFC) leading the pack with a growth of 111 percent. Fauji Fertliser Bin Qasim Limited (FFBL)’s DAP off-take exhibited a surprising decline of 21 percent YoY.

Engro Fertilsier off-take rose by 79 percent MoM/declined by 23 percent YoY at 245000 tones for June 18 from 136000 tones in May 2018 and 318000 tones in June 2017. FFC exhibited a decline of 16 percent MoM/44 percent YoY with urea off take clocking in at 215000 tones from 257000 tones in May 2018 and 386000 tones in Jun 2017. Urea offtake for both Engro Fertliser and FFC have exhibited declines of 10 percent YoY and 8 percent YoY on a quarterly basis.

NP and NPK off-take has exhibited a slowdown during the month of 45 percent MoM 78 percent YoY, sliding by a second consecutive month to cumulatively clock in at 27000 tons. Engro Fertiliser, despite its native NP/NPK production facility has also shown a decline in NP sales, with offtake falling by 44 percent MoM/22 percent YoY at 4000 tones. CAN offtake has also exhibited a downwards trend, declining by 26 percent MoM 67 percent YoY at 43000 tones from 58000 Tons in May 2018 and 130000 tons in June 2017. Cumulatively, CAN offtake has declined by 16 percent YoY to clock in at 330000 tones in 6 months 2018 from 390000 tones in 6 months 2017.

Published in Daily Times, July 25th 2018.

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