KARACHI: Pakistan urea sales have plunged by 21 percent to 477,000 tons in November 2018 as compared with 602,000 tons in the same month of the last year.
Analysts at Topline Securities attributed lower sales to early procurement by dealers and farmers amidst expectations of price hikes in October (Sept sales up 168 percent YoY) and delay in sowing season due to halt in start of sugar cane crushing by millers.
They said that during November 2018 sales were down 21 percent YoY taking 11 months of 2018 sales to 5.1 million tons, down 1 percent YoY.
During November 2018, urea production is likely to increase by 22 percent YoY on back of the start of urea production by FatimaFert and Agritech (contributing around 60-70k tons) and low base effect of EFERT’s production (145k tons in November 2018 against 119k tons in November 2017).
Closing inventory of urea during November 2018 is expected around 245k tons.
Reportedly, first shipment of 50,600 tons of imported urea arrived Pakistan last Sunday and further 50,000 tons will reach by this week.