Pakistan fertilizer sales jump to 4.5-year high in December

Pakistan fertilizer sales in in December soared to a 4.5-year high of 991,000 tons, up by 58% compared with same month last year.

Overall, in 2024, total urea sales were around 6.58 million tons, showing a marginal decline of 1%.

The notable growth in last month's offtakes was driven by availability of interest-free loans to farmers under the ‘Punjab Kisan Scheme’ during the peak Rabi season, higher inventory levels, and a low base from same period last year, said an analyst from AKD Securities.

Consequently, the inventory reduced to 360,000 tons from 756,000 tons in the previous month.

Demand had been subdued in December 2023 due to a 15% price hike at the onset of Rabi season amid limited inventory.

On the other hand, DAP sales concluded in 2024 with a modest growth of 3%, reaching 1.63 million tons compared to 1.58 million tons in same period last year.

The improvement stemmed from increased imports during the latter half of the year, supported by decline in international prices. However, sales of other nutrients, including CAN, NP, and NPK, witnessed decline of 15%, 20%, and 10%, respectively, compared with last year.

Fauji Fertilizer Company led the market growth with enhanced production — it concluded 2024 with total urea sales increasing by 8% to 3.06 million tons.

The annual growth was fueled by enhanced production given improved gas availability to the Fauji Fertilizer Bin Qasim plant, along with lower urea pricing compared to peers.

Consequently, FFC's market share rose to 47% in 2024 from 43% in 2023.

Additionally, DAP offtakes also witnessed a 5% increase to 995,000 tons, raising FFC's DAP market share to 61% in 2024 from 60% a year ago.