Pakistan’s urea sales surge to 4.5-year high in December

Pakistan's urea sales saw a substantial increase of 58% in December compared to the same month the previous year, reaching 991k tons, the highest level since June 2020.

This surge was primarily driven by higher demand due to the seasonal impact of the wheat season.

Provisional data suggests in 2024, cumulative urea sales recorded a slight uptick of 1%, totaling 6,577k tons for the year.

In December, Engro Fertilizers (EFERT) reported 95% increase in urea sales, amounting to 412k tons. This boost was attributed to a discount of PKR 100 per bag aimed at regaining market share.

Similarly, the combined offtake of Fauji Fertilizer Company (FFC) and Fauji Fertilizer Bin Qasim Limited (FFBL) surged by 48%, with sales totaling 377k tons. Fatima Fertilizer also experienced a 34% increase in sales.

Despite the strong performance in December, the overall annual offtake for EFERT and Fatima Fertilizer in 2024 showed declines of 13% and 7%, respectively. In contrast, FFC and FFBL registered an 8% growth in urea sales.

Diammonium phosphate (DAP) sales in December 2024 reached 152k tons, marking a 10% increase compared to the same month the previous year. The annual offtake for DAP in 2024 amounted to 1,641k tons, reflecting a 4% increase.

The urea inventory at the end of December stood at 371k tons, down from 756k tons in November.

Meanwhile, the DAP inventory settled at 83k tons in December, compared to 140k tons in November.

The sharp decline in inventory levels was attributed to higher sales during the period.