Pakistan Urea Sales to Drop 14% in August 2024″

Staff Report:
Pakistan’s urea sales for August 2024 are expected to reach 560k tons, reflecting a 14% year-over-year decline compared to 650k tons in August 2023. Similarly, urea sales are anticipated to decrease by 9% month-over-month due to the monsoon season.

For the first eight months of 2024, urea sales are expected to total 4.2 million tons, down 4% year-over-year from 4.4 million tons in the same period in 2023.Urea Sales Drop by 21% YoY in June 2024, Inventory at 37-Month High

This trend is likely to reduce the closing inventory of urea to around 397k tons in August 2024, slightly down from 399k tons in July 2024.

Among the companies, Engro Fertilizers (EFERT) is expected to record a year-over-year decrease of 30%, with sales reaching 163k tons in August 2024. Fauji Fertilizer Company (FFC) is expected to report sales of 196k tons, down 17% year-over-year. FATIMA’s sales are anticipated to be 131k tons, up 9% year-over-year, while Fauji Fertilizer Bin Qasim (FFBL) is expected to report 55k tons in sales.

Total DAP sales for August 2024 are anticipated to be around 80k tons, down 29% year-over-year and 51% month-over-month. This brings total DAP sales for the first eight months of 2024 to 787k tons, a 12% decline year-over-year.

Company-specific data suggests that FFBL and EFERT are likely to record sales of 12k tons and 51k tons, respectively, followed by FFC’s sales of 3k tons in August 2024.

The closing inventory of DAP is expected to be around 221k tons in August 2024, compared to 40k tons in August 2023 and 103k tons in July 2024.