According to provisional estimates, Urea sales in Pakistan for August 2023 reached 650,000 tons, marking an 18% year-on-year increase compared to the 552,000 tons sold in August 2022. This substantial growth in Urea sales can be attributed to the low sales figures of the previous year, which were adversely affected by heavy rainfall across the country.
On a month-on-month basis, Urea sales are expected to increase by 3% compared to the 629,000 tons sold in July 2023, primarily due to seasonal factors.
Cumulatively, Urea sales for the first eight months of 2023 (8M2023) are forecasted to reach 4,380,000 tons, representing a 3% year-on-year increase compared to the 4,262,000 tons sold during the same period in 2022. This positive trend in sales is expected to reduce the closing inventory of Urea to approximately 90,000 tons in August 2023, down from 175,000 tons in July 2023.
Breaking down the sales by companies, Engro Fertilizer (EFERT) to record sales of 230,000 tons, followed by Fauji Fertilizer Company (FFC) with 200,000 tons, Fatima Group at 120,000 tons, and Fauji Fertilizer Bin Qasim (FFBL) with 50,000 tons in August 2023.
In contrast, total DAP (Diammonium Phosphate) sales during August 2023 are anticipated to reach approximately 248,000 tons, marking a significant 854% year-on-year increase attributed to a low sales base in the previous year. Furthermore, DAP sales are expected to increase by 120% on a month-on-month basis due to seasonal factors. This brings 8M2023 DAP sales to 880,000 tons, reflecting a 30% year-on-year growth.
In terms of individual companies, FFBL and FFC are likely to record DAP sales of 180,000 tons and 35,000 tons, respectively, followed by EFERT with 32,000 tons.
The closing inventory of DAP for August 2023 is projected to be around 45,000 tons, a notable decrease from the 237,000 tons recorded in July 2023.
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