Karachi, March 02, 2021: Pakistan Urea sales in Feb-2021 are expected to clock in at 407k tons, down 12percent YoY amid high base of 460k tons in Feb-2020.
According to Topline, urea sales during Feb-2020 were up by 19percent YoY amid lower Urea prices across the country on the back of reduction in Gas Infrastructure Development Cess (GIDC).
In 2M2021, Urea sales are expected at 1,055k tons compared to 722k tons, up 46percent YoY. Urea sales are also expected to decline by 37percent MoM due to seasonal factors.
Amongst the companies, Engro Fertilizers (EFERT) is expected to post significant increase in Urea sales by 99percent YoY to 160k tons amid low base of 80k tons as EFERT had declined its Urea prices last year by only Rs160/bag compared to others reduction of Rs300/bag.
Fauji Fertilizer (FFC) sales are likely to decline by 39percent YoY to 186k tons and Fauji Fertilizer Bin Qasim (FFBL) is likely to witness a sales decline of 35percent YoY to 18k tons.
Urea production in Feb-2021 is expected to decline by 6percent YoY to 436k tons mainly due to decline in production of FFBL by 44percent to 20k tons amid plant closure. This will take Urea’s closing inventory to around 128k tons.
Total DAP sales are anticipated to remain largely unchanged YoY at around 88k tons, while DAP sales are likely to increase by 7percent MoM.
FFBL is likely to record DAP sales of 38k tons (down 19percent YoY), while EFERT is likely to record sales of 5k tons (down 56percent YoY). FFC is likely to record zero sales in Feb-2021.
FFBL’s DAP production is expected at 38k tons, taking closing inventory of DAP to around 63k tons.
