Pakistan urea sales jump 17% in Sept, but floods weigh on fertilizer sector

Urea sales in Pakistan rose 17% year-over-year in September, reaching 429,000 tons, according to provisional data from Arif Habib Limited. The increase was largely driven by a low base effect from last year’s wheat crisis.

Engro Fertilizers Ltd. (EFERT) led the surge with an 85% rise in sales, totaling 104,000 tons. Fauji Fertilizer Co. (FFC) saw a modest 3% increase to 236,000 tons. Fatima Group, however, reported a 27% decline, with sales falling to 50,000 tons.

On a month-over-month basis, industry-wide urea sales dropped 48% due to widespread flooding in September. Company-wise, FFC’s sales fell 27%, EFERT’s dropped 63%, and Fatima Group saw a 71% decline.

For the nine months ending in September, total urea offtake fell 9% year-over-year to 4.21 million tons. FFC’s offtake dropped 12% to 1.96 million tons, while EFERT recorded a 5% decline to 1.25 million tons. Fatima Group was the only major player to post growth, with sales rising 18% to 736,000 tons.

DAP sales plummet 47% in September

Sales of di-ammonium phosphate, or DAP, dropped 47% year-over-year and 48% from the previous month to 71,000 tons. The decline was attributed to lower imports and reduced demand from FFC, the country’s largest DAP supplier.

FFC’s DAP offtake declined 29% year-over-year and 43% month-over-month to 61,000 tons. Its total sales for the nine-month period fell 12% to 541,000 tons.

EFERT’s DAP sales plunged 79% year-over-year to just 3,000 tons in September. For the year through September, EFERT sold 95,000 tons, down 52% from the same period in 2024.

Fatima Group reported a 60% drop in DAP sales for the month, settling at 1,000 tons. Its cumulative sales declined 26% to 27,000 tons over the nine-month period.

Inventories, market share hold steady

Urea inventories were estimated at 1 million tons at the end of September, unchanged from August.

FFC maintained its lead in the urea market with a 46% share through the first nine months of 2025, followed by EFERT at 30% and Fatima Group at 18%.

In the DAP segment, FFC held a dominant 70% share, with EFERT and Fatima Group accounting for 12% and 4%, respectively.

Despite a year-over-year increase in urea sales for September, ongoing challenges, including adverse weather conditions and weak farm economics, continue to cloud the fertilizer sector’s outlook. The sharp contraction in DAP sales highlights ongoing pressure on demand amid limited supply and high costs.