Pakistan's urea sales rise in November, DAP sales lag behind

Pakistan's urea sales recovered while DAP sales remained slow in November, official data showed on Monday.

As the Rabi season is in full swing, the demand for fertilizers has been strong.

Domestic urea sales in Pakistan increased by 7% in November compared to the same month last year, reaching 654,000 tons.

However, companies still have high urea inventory levels due to lower sales in previous months. For example, Fauji Fertilizer has 141,000 tons, Fauji Fertilizer Bin Qasim has 23,000 tons, Engro Fertilizer has 313,000 tons, and Fatima Fertilizer has 59,000 tons in stock.

On the other hand, DAP sales were recorded at 250,000 tons in November, which is a 10% decline compared to the same month last year.

The inventory levels for DAP have dropped because there were no imports in November, unlike last year when 123,000 tons were imported. This is due to high inventory levels maintained by companies and lower demand because of weak farm economics.

Analysts have a positive outlook on the fertilizer sector. They believe the government's efforts for food security and better prices for crops like wheat, maize, rice, and sugarcane will support the sector. Additionally, analysts expect that any increase in gas prices and inflationary pressures will be passed on to consumers, keeping the sector profitable.