Fertilizer Sales decline in Feb-2021

March 29, 2021

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Pakistan’s Fertilizer Sales off-take declined in February-2021 due to higher sales of nitrogen based fertilizer in the previous month.

Moreover, Paksitan crossed 1 million tons Urea off-take milesstone in first two months of the year 2021 due to expected further gas price increase owing to IMF program and Wheat Support price set by the government.

DAP/NP/CAN Sales increased by 1%/52%/18% YoY in February-2021. Limited imports and lower local production led to decline in DAP inventory falling to the lowest levels of the decade.

Urea off-take in first two months of 2021 increased by 46% YoY due to higher demand from cash crops across the country, inventory build-up move by dealers in anticipation of hike in gas tariff due to resumption of IMF program and lower prices of Urea.

However, Urea off-take declined by 12%/37% YoY/MoM in February-2021 due to higher sales of urea in the previous month.

DAP offtake increased by 1%/7% YoY/MoM in February-2021 due to pre-buying by dealers given due to an expected decline in the imported product due to global supply constraints and volatile international prices. Domestic DAP prices increased by 33% YoY in February’2021.

Among other types of the fertilizer, NP/CAN offtake increased by 52/18% YoY in February-2021 due to better crop prices . Furthermore, resumption of production by Pak Arab fertilizers also provided further support to higher NP/NPK overtake.