Engro Fertilizers has increased the price of Di-Ammonium phosphate (DAP) urea, confirmed an official privy to the matter, as rupee depreciation and rising cost of production takes a toll on the economy.
The development was also shared by JS Global Research that stated Engro Fertilizers Ltd (EFERT) has increased DAP prices by Rs1,700 per bag.
"EFERT's DAP retail price now stands at Rs12,100 per bag, which is Rs700 more expensive than the price of Fauji Fertilizer Company's DAP urea,” stated JS Global Research Analyst Waqas Ghani.
However, the analyst said others would also follow with a price-hike owing to rupee depreciation. "Fertiliser companies import DAP and whenever rupee depreciates, as it has, and DAP’s international price goes up, companies tend to jack up its rate in the country."
The rupee closed at a record low of 208.75 against the US dollar on Friday with a 3.1% fall during the outgoing week.
Meanwhile, Ghani said prices of steel rebar have also increased by another Rs5,000 per ton.
“According to our channel checks, steel rebar prices have increased by Rs5,000 per ton with effect from June 18, 2022,” said Ghani. “Current retail prices now stand in the range of Rs 232,000-234,000 per ton.”
With the latest hike, steel prices have jumped Rs20,000 just this month. According to Ghani, steel manufacturers increased steel prices on June 6 by Rs8,000 and by Rs7,000 on June 13.
He said international steel scrap prices have gone down, but companies have passed on the impact of rupee depreciation.
Association of Builders and Developers (ABAD) said, however, that the increase is due to the regulatory duty imposed on import of steel bars, which has given undue protection to local manufacturers.