June 1, 2012

Pakistan's April fertiliser sales drop 30%

The total fertiliser sales of Pakistan in April fell significantly by 30% to 448,000 tonnes, according to the latest National Fertilizer Development Centre's (NFDC) report shows.

Urea sales witnessed a significant decline of 37% to 308,000 tonnes with local fertiliser manufacturers' sales coming down by 63% to 151,000 tonnes while imported urea offtake was recorded higher by 91% at 157,000 tonnes.

The decline in local fertiliser manufacturers' offtake was primarily attributable to availability of government's subsidised imported urea. On the other hand, DAP sales increased by 10% on-year to 60,000 tonnes during the same period, owing to stabilising local prices.

Urea production during April declined by 6% on-month as plants on the SNGP network remained closed. However, the closing inventory of urea was recorded at 936,000 tonnes of which 768k lies with the local manufacturers. FFC and ENGRO had a closing inventory of 368,000 tonnes and 238,000 tonnes, respectively.

It was for this reason that the local manufacturers had reduced urea prices recently so as to get rid of the piled up inventory. As far as the offtake is concerned urea sales declined significantly by 37% on-year to 308,000 tonnes, while on an on-month basis sales actually increased by 17%.

Urea sales for local fertiliser manufacturers declined by 63% on-year to 151,000 tonnes, whereas imported urea offtake was recorded higher by 91% on-year at 157,000 tonnes. Availability of government's subsidised urea was the main factor behind the decline in local fertiliser manufacturers' offtake. Cumulative 4M2012 offtake came in at 1.3 million tonnes compared to 1.7 million tonnes, down 22%on-year.

Company wise break-up showed that urea offtake of FFC, ENGRO, FFBL and FATIMA all witnessed a decline in the respective offtakes.

Their sales were down 65%, 68%, 62% and 94%, respectively to 75,000 tonnes, 30,000 tonnes, 19,000 tonnes and 1,000 tonnes in April.