Fertilizer sales dip in seven months

KARACHI: Fertilizer off-take showed a drop of 3.8 per cent in first seven month of calendar year 2011 (7MCY11) to 4.35 million tonne compared to 4.52 million tonne in 7MCY10.

Fall in off-take was primarily driven by gas curtailment owing to lower production by 7 per cent year on year basis (YoY) in 7MCY11 and delay in imports during the period.

According to the latest fertilizer data, urea sales declined by 11.3 per cent to 3.16 million tonnes in 7MCY11 against 3.56 million tonnes in identical period of last year.

Similarly, Di ammonium phosphate (DAP) sales remained weak during 7MCY11 period with the industry registering surge in growth of 20.5 per cent on YOY basis.

DAP sales remained at 445,000 tonne compared to 369,000 tonne in 7MCY10 mainly due to shortage of urea and expectation of higher DAP prices.

On the other hand, fertilizer off-take up by 12.94 per cent YoY in the month of July 2011 at 759,000 tonne versus 672,000 tonne in July 2010 mainly due to buying in anticipation of increase in feed gas prices resulted into surge in fertilizer prices.

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