Fertilizer : Urea offtake rise in Aug-14

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Fertilizer Sector

-As per preliminary figures, urea offtake clocked in at ~625k tons (+21% YoY and +28% MoM) in Aug-2014. Against this backdrop, we anticipate urea offtake to settle at 3,670k tons (-1% YoY) for 8M2014.

-Meanwhile DAP sales clocked in 66% YoY higher and 3% MoM lower at 140k tons in Aug-2014, taking YTD 2014 DAP sales to 692k tons (+18% YoY).

-Company-wise details of Aug-2014 urea offtake reveals an overall positive trend for local urea producers barring Fatima Fertilizer (FATIMA) and Fauji Fertilizer Bin Qasim (FFBL), which reported urea offtake of ~40k tons (+8% YoY and -18% MoM) and ~25k tons (-26% YoY and +74% MoM),
respectively.

-On the other hand, Fauji Fertilizer (FFC) and Engro Fertilizer (EFERT) witnessed outright positive sales of ~230k tons (+16% YoY and +22% MoM) and ~165k tons (+2% YoY and +6% MoM), respectively.

Fertilizer SectorUrea offtake for August 2014 (up 21% YoY and 28% MoM)
As per preliminary figures, urea offtake clocked in 21% YoY and 28% MoM higher at ~625k tons in Aug-2014. The growth in urea offtake is likely because of higher imported urea sales in Aug-2014. Note that NFML’s sales were recorded at ~150k tons in Aug-2014 with a closing inventory of ~200k tons. Against this backdrop, we anticipate urea offtake to settle at 3,670k tons (-1% YoY) in 8M2014. Resultantly, Pak urea inventory is likely to stand at ~240k tons as of end Aug-2014, where NFML holds 83% of the inventory. Meanwhile DAP sales clocked in 66% YoY higher and 3% MoM lower at 140k tons in Aug-2014, taking YTD 2014 DAP sales to 692k tons (+18% YoY). Offtake of other fertilizers showed a mixed trend, where CAN sales were recorded at 35k tons (+3% YoY and +6% MoM) and NP sales at 25k tons (-22% YoY and -23% MoM).

 

Fertilizer Sector

Overall positive monthly urea offtake all around
Company-wise details of Aug-2014 urea offtake reveals an overall positive trend for local urea producers barring FATIMA and FFBL, which reported urea offtake of ~40k tons (+8% YoY and -18% MoM) and ~25k tons (-26% YoY and +74% MoM), respectively. On the other hand, FFC and EFERT witnessed outright positive sales of ~230k tons (+16% YoY and +22% MoM) and ~165k tons (+2% YoY and +6% MoM), respectively. As far as locally produced DAP sales are concerned, FFBL were able to sell 65k tons (+30% YoY and -9% MoM) during Aug-2014.

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