JS Securities Limited – JS Research Beep

Karachi, July 29, 2016 (PPI-OT): NFDC releases fertilizer offtake numbers

NFDC released fertilizer numbers for the month of June-16. Numbers were largely in-line with JS Securities Limited’s expectations as urea sales showed signs of revival and NP euphoria fizzled out. Going forward, JS Securities Limited believes that interest in urea will revert especially in the Rabi season. Key highlights of the data were:

Urea sales recorded encouraging improvement both on a YoY and MoM basis. JS Securities Limited believes urea sales will bounce back after massive price cut.

DAP sales slid both on a YoY and MoM basis due to absence of subsidy. Going forward, DAP sales should also improve as reduced prices have come into effect.

NP euphoria halted with reduction in urea prices. JS Securities Limited believes that interest will revert to urea and NP sales will remain depressed going forward.