Urea Sales Drop by 21% YoY in June 2024, Inventory at 37-Month High

ISLAMABAD.

Pakistan’s urea sales for June 2024 are projected to reach 483,000 tons, marking a 21% year-over-year (YoY) decrease from 610,000 tons in June 2023. However, urea sales are expected to rise by 21% month-over-month (MoM) due to the continued sowing of Kharif crops.

For the first half of 2024, urea sales are anticipated to total 3,038,000 tons, down 2% YoY from 3,101,000 tons in the first half of 2023. This decrease is likely to result in a closing inventory of approximately 474,000 tons in June 2024, compared to 215,000 tons in June 2023 and 368,000 tons in May 2024. The inventory level is expected to be the highest in 37 months.G2G Urea Import Deal Proposed

Engro Fertilizers (EFERT) is forecasted to experience a 26% YoY decline in sales, amounting to 155,000 tons in June 2024, primarily due to the scheduled maintenance closure of its Enven plant, which resumed operations on June 18, 2024.

Fauji Fertilizer Company (FFC) is expected to report sales of 240,000 tons, down 13% YoY. Fatima Group is projected to sell 42,000 tons, a 44% YoY decrease, and Fauji Fertilizer Bin Qasim (FFBL) is anticipated to record sales of 18,000 tons, down 13% YoY in June 2024.

Total sales of DAP (Diammonium Phosphate) in June 2024 are expected to be around 122,000 tons, up 138% YoY due to a low base effect. This brings DAP sales for the first half of 2024 to 544,000 tons, a 5% YoY increase.

Company-wise, FFBL and EFERT are likely to record sales of 81,000 tons and 31,000 tons respectively, followed by FFC with sales of 6,000 tons in June 2024.

The closing inventory of DAP is projected to be around 167,000 tons in June 2024, compared to 275,000 tons in June 2023 and 117,000 tons in May 2024.