Fertilizer, Pakistan Agriculture News

Urea off-take expected to increase

LAHORE  :  According to the provisional off-takes for the month of Jan 2019, the urea sale is likely to go up 5 percent to 566,000 tons. During Jan 2019, the state owned National Fertilizer Marketing Limited (NFML) is expected to record urea sales of 73,000 tons, its highest monthly sales since Feb 2015 as import of 100,000 tons urea makes its way to the market. Amongst local manufacturers, Agritech Limited (AGL) may witness fastest sales growth in its urea sales to 26,000 tons, primarily as a result of low sales in same period of last year due to gas supply issues.

On the other hand, market leaders Fauji Fertilizer Company (FFC) and Engro Fertilizers Limited (EFERT) are expected to record 12 percent and 39 percent drop in their urea offtake to 197k tons and 159k tons, respectively. Total DAP offtakes during the month may contract 14 percent YoY and clock in at 79k tons, where the drop is likely to be led by FFC that may record steep 77 percent YoY drop in its DAP dispatches to just 6k tons. Similarly, Fauji Fertilizer Bin Qasim Limited (FFBL) DAP sales are projected to dip 55 percent YoY to 14k tons.