Urea sales in October 2022 are expected to clock in at 430,000 tons, down by 15 percent month-on-month (MoM) and 16 percent year-on-year (YoY) due to floods.
According to Topline Securities, the drop is expected to take urea sales for January-October CY2022 to 5.2 million tons, compared to 5.17 million tons in the corresponding period last year.
Closing inventory in October 2022 is expected to be around 360,000 tons versus 294,000 tons in the previous month. Company-wise breakdown suggests Engro Fertilizers (EFERT) will likely record an offtake of 97,000 tons, depicting 40 percent YoY and 41 percent MoM drops amid the closure of its base plant for scheduled maintenance.
Fauji Fertilizer Company (FCC) is expected to record sales of 191,000 tons followed by 75,000 tons from Fatima Group and 42,000 tons from Fauji Fertilizers Bin Qasim (FFBL).
Total Diammonium Phosphate (DAP) sales for October 2022 are projected to be down by 82 percent YoY at 63,000 tons due to the reasons mentioned above. The report further forecasts MoM sales to remain flat, taking overall sales for January-October by 48 percent YoY to 802,000 tons.
FFBL, EFERT and FFC are expected to record sales of 31,000 tons, 19,000 tons, and 8,000 tons, respectively. Meanwhile, FFBL’s DAP production will likely clock in at 75,000 tons, taking the closing inventory of DAP to around 500,000 tons.
