KARACHI: Urea sales in November rose 5 percent year-on-year to 610,000 tonnes, driven by seasonal demand, while Diammonium Phosphate (DAP) sales fell 11 percent year-on-year to 210,000 tonnes, a brokerage report said on Tuesday.
Brokerage Topline Securities said urea sales in the first 11 months of 2023 increased 4 percent year-on-year to 6.01 million tonnes, while DAP sales surged 31 percent year-on-year to 1.37 million tonnes.
The brokerage attributed the growth in urea sales to lower inventory levels, higher crop prices and favourable weather conditions. The decline in DAP sales in November was due to a high base effect, as DAP sales in November 2022 were exceptionally high at 236,000 tonnes.
The report said the closing inventory of urea in November 2023 was estimated at 120,000 tonnes, down 62 percent from 313,000 tonnes in November 2022. The closing inventory of DAP in November 2023 was estimated at 50,000 tonnes, down 91 percent from 562,000 tonnes in November 2022.
Among the fertilizer companies, Engro Fertilizers recorded the highest year-on-year increase of 130 percent in urea sales to 220,000 tonnes in November 2023, mainly due to a low base effect, as its base plant was closed for scheduled maintenance and its Enven plant tripped in November 2022, the report said.
Fauji Fertilizer Company recorded urea sales of 200,000 tonnes, down 9 percent year-on-year, followed by Fatima Group of 125,000 tonnes, down 3 percent year-on-year, and Fauji Fertilizer Bin Qasim of 50,000 tonnes, down 5 percent year-on-year, in November 2023, the report said.
In terms of DAP sales, Fauji Fertilizer Bin Qasim and Engro Fertilizers recorded sales of 80,000 tonnes and 55,000 tonnes respectively, followed by Fauji Fertilizer Company's sales of 24,000 tonnes in November 2023, the report added.