April urea offtake witnesses 50 percent growth YoY

The urea offtake witnessed a strong growth of 50 percent in April 2018 compared with the same period of last year. According to National Fertilizer Development Centre (NFDC), total nutrient offtake during April 2018 was about 0.26 tons, which was 21.2 percent higher than April 2017. Nitrogen offtake increased by 38.2 percent over April 2017, while phosphate and potash offtake decreased by 20.9 and 37.8 percent, respectively.
In product terms, urea offtake was 0.375 million tons, which was 50.3 percent higher when compared with same period last year. Total DAP offtake was 69,000 tons, witnessing a decrease of 28.2 percent over April 2017.
Production of all fertilizer products during April 2018 was about 0.557 million tons. Urea production was 0.433 million tons, ie, 77.9 percent of total production. The DAP production was 31,000 tons. Imported supplies during April 2018 were 55,000 tons including 45,000 tons of DAP.
On the domestic front, prices of all fertilizers except urea (Sona) and CAN increased during the month under review. Prices of urea (Sona) and CAN decreased by 0.4 and 1.6 percent, respectively. Ex-Karachi price of imported urea was in range of Rs 1,920 to 2,318 per 50-kg bag. Ex-Karachi price of DAP ranged from Rs 3,019 to 3,170 per 50-kg bag.
On the international front, fob bulk China urea price during April 2018 fluctuated in the range of $ 295-305/per ton. Middle East fob bulk urea price was in the range of $ 250-255 per ton.
Presenting the outlook for Kharif 2018, the NFDC said that urea availability during Kharif 2018 is estimated to be around 3.115 million tons comprising 0.378 million tons of previous season carryover stock and local production of 2.737 million tons. The urea offtake is projected to be around 2.813 million tons during Kharif 2018 reflecting a reserve stock of 0.302 million tons for next season.
As regards DAP, Kharif 2018 started with an opening balance of 0.190 million tons. Domestic production during the season is estimated to be 0.381 million tons and imported supplies of 0.345 million tons. Thus total availability of DAP will be around 0.916 million tons. The estimated demand of DAP during Kharif 2018 is around 0.720 million tons. There will be a buffer stock of 0.199 million tons at the end of Kharif 2018.