Fertilizer offtakes jump by 17.3% YoY in June
July 26, 2022 (MLN): The country’s overall nutrients offtake increased by 17.3% to 483,000 tonnes during June 2022 compared to the same month last year, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed today.
Among the nutrients, nitrogen and phosphate offtake increased by 9.3% YoY and 91.2% YoY to stand at 331,000, and 94,000 tonnes, respectively during June 2022. While Potash offtake declined by 27.9% over June 2021.
The report further highlighted that about 766,000 tonnes of different fertilizer products were produced in Pakistan during the month of June 2022. Out of this, urea has the major share of 69.4% with 531,000 tonnes.
Other products were DAP (72,000 tonnes), Nitrophos (77,000 tonnes), CAN (69,000 tonnes), SSP (9,100 tonnes), various grades of NPK (6,000 tonnes), and SOP (1,700 tonnes). Total imported supplies were 26,000 tonnes comprising 23,000 tonnes of DAP, 2,300 tonnes of SOP, and a small quantity of AS i.e., 900 tonnes during June 2022.
Total nutrients offtake during the first three months of Kharif 2022 (April-June) was about 1,107,000 tonnes, showing an increase of 6.7% over Kharif 2021. Nitrogen offtake increased by 5.5% and phosphate offtake increased by 15.3%. While potash offtake witnessed a decrease of 31.8% as compared with a same time frame of Kharif 2021
UREA
The total sales of urea stood at 737,000 tonnes, showing an increase of 6.8% over June 2021.
Total urea availability during June 2022 was 998,000 tonnes, which comprised 467,000 tonnes of the previous month’s leftover and domestic production of 531,000 tonnes. Urea’s offtake during May 2022 was 737,000 tonnes. Thus, the closing balance is worked out to be 256,000 tonnes.
Cumulatively, during the first three months of Kharif 2022 (Apr-Jun), urea offtake was 1,613,000 tonnes, up by 7.5% compared to the same time frame of Kharif 2021.
As per the report, the high prices of agricultural commodities especially wheat has a favourable effect on fertilizer use.
On the pricing front, the report noted that prices of all fertilizer products except urea increased during June 2022 as compared with the previous month. The price of a 50 kg bag of urea (sona) and urea (other) in the domestic market during the said month dipped by 0.2% and 0.6% MoM to Rs2,148 and Rs1,992 respectively.
In the international market, Fob bulk China urea price during June 2022 fluctuated in the range of $540-$640/t fob bulk. Middle East fob bulk urea price was in the range of $535-$682/t fob bulk. Ex-Karachi price of imported urea was in the range of Rs7,023 to Rs8,691 per 50 kg bag.
Province-wise, the offtake of urea during June 2022 jumped by 3%, 20% and 65% in Punjab, Sindh and KP, respectively as compared with June 2021. On the other hand, its offtake decreased by 53% in Balochistan province over the same month last year.
Looking ahead, with the present level of urea production i.e., 3,108,000 tonnes and 200,000 tonnes of imported supplies, its availability during Kharif 2022 would be about 3,508,000 tonnes against the estimated demand of 3,302,000 tonnes, leaving a balance of 203 thousand tonnes
for next season, the report said.
Thus, the situation regarding urea looks satisfactory if the import is not delayed, it added.
DAP
The sales of diammonium phosphate (DAP) witnessed a significant increase of 113.4% to 146,000 tonnes in June 2022, against 68,000 tonnes recorded in the same month last year.
During the first three months of Kharif 2022, DAP offtake was about 335 thousand tonnes (an increase of 16.5% over Kharif 2021).
The report stated that the price of a 50 kg bag of DAP in the domestic market during the said month edged up by 6.3% to Rs10,316 when compared to Rs9,703 reported in May 2022.
In the international market, DAP prices were around $925-$1,010 fob bulk in Australia, while prices in China were in the range of $950-$1,000/t.
Ex-Karachi price of imported DAP ranged between 10,845 to 11,760 per 50 kg bag.
Province-wise, DAP offtake during the review month increased by 80%, 283%, 143% and 178% in Punjab, Sindh, KP and Balochistan, respectively over June 2021.
As per the report, total DAP availability during Kharif 2022 would be 864,000 tonnes comprising of 276,000 tonnes of inventory, 152,000 tonnes imported supplies and 436,000 tonnes of domestic production.
As against this availability, DAP offtake estimates are around 902,000 tonnes. Meanwhile, a reasonable quantity of NP, SSP and other phosphatic fertilizers would also be available to meet the demand of Kharif 2022.
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Posted on: 2022-07-26T13:38:46+05:00
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