Engro Fertilizers faces sales decline in June 2024

In June 2024, urea sales in Pakistan are expected to reach 483,000 tons, reflecting a 21% decrease compared to the same period in 2023. This decline is influenced by market conditions and agricultural trends. However, there is optimism for the upcoming month, with a projected 21% increase in sales due to the ongoing Kharif crop sowing season.

For the first half of 2024, total urea sales are estimated to be around 3.038 million tons, slightly lower than the previous year. Notably, the closing inventory of urea in June 2024 is anticipated to be 474,000 tons, the highest level in over three years.

Among the key players in the fertilizer industry, Engro Fertilizers (EFERT) is expected to witness a 26% decrease in sales in June 2024 due to maintenance activities at one of its plants. Similarly, other major companies like Fauji Fertilizer Company (FFC), Fatima Group, and Fauji Fertilizer Bin Qasim (FFBL) are also likely to experience declines in sales during the same period.

On the contrary, DAP sales are set to rise significantly in June 2024, with an expected total of 122,000 tons, driven by various market dynamics. This growth trend is projected to continue in the first half of the year, with total DAP sales showing a year-on-year increase.

Looking forward, the closing inventory of DAP in June 2024 is forecasted to be higher than in previous years, signaling a positive market outlook for the fertilizer industry in Pakistan.

The fertilizer market in Pakistan is experiencing fluctuations in urea and DAP sales, influenced by factors like agricultural seasons and company-specific activities. While urea sales are expected to dip initially, the anticipation of a rebound in the coming months offers hope for the industry. On the other hand, the surge in DAP sales indicates a promising trend for the market. Overall, the fertilizer sector in Pakistan is poised for growth and stability in the near future.