Karachi, February 02, 2021:Pakistan urea sales in Jan-2021 are expected to clock in at 628k tons, up 140 percent YoY amid low base of 262k tons in Jan-2020. Urea sales are down by 29 percent MoM.
To recall, urea sales during Jan-2020 were significantly down by 54 percent YoY amid pre-buying by dealers in Dec-2019 on anticipation of hike in urea prices due to potential increase in gas prices.
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Amongst the companies, Engro Fertilizers (EFERT) is expected to post increase in urea sales by 348 percent YoY to 335k tons followed by Fauji Fertilizer (FFC) increase of 200 percent YoY to 220k tons.
Fatima group’s sales are likely to decline by 35 percent YoY to 70k tons, while Fauji Fertilizer Bin Qasim (FFBL) is expected to record zero sales in Jan-2021 due to annual turnaround.
Urea production in Jan-2021 is expected to increase by 1 percent YoY to 225k tons. This will take urea’s closing inventory to around 122k tons.
Total DAP sales are anticipated to clock in at around 130k tons, up 197 percent YoY due to expected hike in DAP prices. DAP sales are down by 37 percent MoM.
EFERT is likely to record DAP sales of 27k tons (up 2214 percent YoY), while FFBL is likely to record sales of 17k tons (down 8 percent YoY). FFC is likely to record zero sales in Jan-2021.
§ FFBL’s DAP production is expected at 17k tons, taking closing inventory of DAP to around 70k tons.
