Karachi, August 04, 2020: Pakistan Urea sales in Jul-2020 are expected to jump by 22 percent YoY to clock in at 567k tons as compared to 465k tons in Jul-2019.
However, sales are likely to decline by 51 percent MoM as Jun-2020 had largely catered to pent up demand of previous couple of months because of uncertainty surrounding the Urea subsidy.
Urea sales are expected at 3,239k tons during 7M2020 compared to 3,353k tons in 7M2019, down 3 percent YoY.
Amongst the companies, Engro Fertilizer (EFERT) is expected to post highest increase in Urea sales by 86 percent YoY to 326k tons during Jul-2020.
Fauji Fertilizer (FFC) is likely to post a decline in its Urea offtake by 36 percent YoY to 112k tons in Jul-2020 compared to 176k tons in Jul-2019.
Urea production in Jul-2020 is expected to decline by 12 percent YoY at 499k tons due to absence of RLNG-based players. This is likely to take Urea closing inventory to ~346k tons.
Total DAP sales in Jul-2020 are anticipated to clock in at around 260k tons, up by 29 percent YoY after the clarification that the subsidy will start from Rabi season.
DAP sales are expected at 858k tons during 7M2020 compared to 848k tons in 7M2019, up 1 percent YoY.
Company wise data suggests, EFERT is likely to record sales of 72k tons (up 74 percent YoY) followed by FFBL’s 105k tons (up 5 percent YoY), while FFC is likely to post a decline of 54 percent YoY to 18k tons.
FFBL’s DAP production is likely at 75k tons, taking closing inventory of DAP to around 420k tons.
