Urea Offtake Plunges by 10% in May

As per provisional fertilizer offtake data for the month of May 2022, urea offtake reported a decline of 10 percent on a month-on-month (MoM) basis, owing to seasonality impact.

According to a report compiled by Arif Habib Limited (AHL), urea offtake plummeted by 18 percent year-over-year (YoY) to 412,000 tons compared to 501,000 tons in the same period last year.

Offtakes of FFC and FFBL (combined), EFERT, and FATIMA depicted a fall of 10 percent, 27 percent, and 32 percent YoY, respectively, clocking in at 217,000 tons, 146,000 tons, and 32,000 tons, respectively.

Urea sales of EFERT, and FATIMA reduced by 7 percent, and 50 percent MoM, respectively. Meanwhile, the offtake of FFC and FFBL (combined) depicted an uptick of 1 percent. On a cumulative basis, urea sales were up by 13 percent YoY during the first five months of the calendar year (CY) 2022, arriving at 2,504,000 tons.

The urea offtake of FFC and FFBL combined registered a growth of 13 percent YoY, settling at 1,180,000 tons while FATIMA’s sales climbed up by 58 percent to 347,000 tons. The offtake of EFERT witnessed a drop of 7 percent YoY to settle at 852,000 tons.

Similarly, the Diammonium Phosphate (DAP) offtake plunged by 44 percent YoY to 97,000 tons during May 2022. On an MoM basis, the DAP offtake depicted an uptick of 1 percent MoM, whereas, during 5MCY22, it reduced by 17 percent YoY at 441,000 tons on account of a massive surge in DAP prices.

On a company-specific basis, DAP sales of FFC and FFBL clocked in at 69,000 tons in May 2022, portraying a fall of 30 percent YoY. Meanwhile, FFC and FFBL’s combined DAP offtake grew by 81 percent MoM.

With this, FFC and FFBL’s DAP offtake during 5MCY22 settled at 247,000 tons, down by 9 percent YoY. On the other hand, EFERT’s DAP sales during May 2022 declined by 40 percent YoY | MoM to 16,000 tons. Hence, EFERT’s DAP offtake in 5MCY22 augmented to 99,000 tons, up by 19 percent YoY.

Towards the end of May 2022, the closing inventory of urea producers stood at 438,000 tons versus 318,000 tons in April. As of May, the inventory position of DAP is 345,000 tons.



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