June 7, 2012

Pakistan's Fauji Fertiliser increases urea prices by US$0.53/bag

In order to cover extra cost fertiliser companies' beers, Pakistan's Fauji Fertiliser Company Limited has increased the prices of urea by PKR50 (US$0.53) per bag to PKR1700 (US$18.05) per bag, as per industry sources reveal.

Previously, fertiliser companies cut urea prices by PKR145 (US$1.54) per bag to PKR1,650 (US$17.52) per bag owing to better off-take in Kharif seasons.

Going forward, we believe that the imposition of recent gas cess (effective from July 2012) continues to pose a risk to fertiliser earnings unless manufacturers' raises urea prices in line with increase in feed stock prices.