Urea sales seen down 4% in July as monsoon rains, high inventories curb demand
January-July urea sales projected to rise 5% to 3.1 million tons despite monthly decline; industry inventories expected to climb to 930,000 tons
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Urea sales fall 4% in July as rains, inventories weigh on demand
Pakistan’s urea sales are expected to decline 4% year-on-year in July 2026 as monsoon-related disruptions and elevated dealer inventories dampen fertilizer demand, although cumulative sales for the first seven months of the year are projected to remain higher than a year earlier.
Industry estimates showed urea sales are likely to reach 581,000 tons in July, down 4% from the same month last year and 2% from June. However, cumulative urea sales for January-July 2026 are expected to rise 5% year-on-year to 3.1 million tons.
Analysts attributed the monthly decline to heavy monsoon rains that delayed fertilizer application across major crop-growing regions. They also cited dealer pre-buying in previous months and seasonal factors that led to higher inventory levels, reducing fresh purchases in July.
Industry urea inventories are expected to increase to 930,000 tons at the end of July from 840,000 tons in June.
Among manufacturers, Engro Fertilizers is expected to hold the largest inventory at 731,000 tons, followed by Fatima Fertilizer with 132,000 tons and Fauji Fertilizer Company with 62,000 tons.
Company-wise, Fauji Fertilizer Company’s July urea sales are projected to edge down 1% year-on-year to 269,000 tons, while Engro Fertilizers’ sales are expected to fall 19% to 167,000 tons. Fatima Fertilizer is forecast to post more than a threefold increase in sales to 127,000 tons.
For the first seven months of 2026, Fauji Fertilizer Company’s cumulative urea sales are expected to rise 20% year-on-year to 1.7 million tons, while Fatima Fertilizer’s sales are projected to jump 110% to 518,000 tons. Engro Fertilizers’ cumulative sales are forecast to decline 22% to 704,000 tons.
Meanwhile, diammonium phosphate (DAP) sales are expected to decline 13% year-on-year in July to 93,000 tons, although sales would nearly double from June levels. Cumulative DAP sales for January-July are projected at 577,000 tons, up 3% from a year earlier.
Fauji Fertilizer Company is expected to record DAP sales of 81,000 tons in July, while Engro Fertilizers is projected to sell 7,000 tons. Industry DAP inventories are estimated to close the month at around 243,000 tons.
Analysts expect urea demand to remain stable in the coming months, supported by seasonal fertilizer application and improved farm incomes amid higher crop prices.
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