Fertiliser price rises by Rs150 per bag

Fauji Fertiliser’s primary margin to remain intact: analyst.


Express July 23, 2011

KARACHI:


Fertiliser DAP price has increased by Rs150 per bag to Rs4,200 per bag on Friday mainly due to increase in raw material prices.


This bodes well for Fauji Fertiliser Bin Qasim, the sole di-ammonia phosphate (DAP) manufacturer, as this has created enough room to pass through its cost pressures, and leaving primary margins intact at around $240 to $250 per ton during July to September 2011, said analysts. However it doesn’t bode so well for farmers.

FFBL, the second most traded share, rose Rs0.54 to close at Rs47.52 at the Karachi Stock Exchange on Friday.

Price of raw material phosacid was recently revised upward by Rs150 per bag ($70) to $1,050 per ton during July to September 2011.

Consistent increase in sulphur and phos rock prices was anticipated to lead to increase in phos-acid prices, said BMA Capital analyst Omar Rafiq.

Anticipation of higher DAP prices could potentially lead to early stocking by dealer networks and result in better than anticipated sales during June and July, added Rafiq.

Engro last week increased prices of urea, another type of fertiliser, by Rs125 per bag to Rs1,340 per bag on account of excessive gas curtailment in the first six months of 2011.





Published in The Express Tribune, July 23rd, 2011.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ