Fertiliser sales manage 3% growth

Engro’s new plant posts highest ever monthly production.

KARACHI: Fertiliser sales managed to grow by 3% to 5.12 million tons despite urea, the highest selling fertiliser product, witnessing a fall during the first eight months of 2011, according to the data released by National Fertiliser Development Centre.

The increase in sales can be attributed to 23% higher sales of di-ammonia phosphate (DAP), the second highest selling fertiliser, along with healthier sales of nitrous and phosphate products like CAN, NP and NPK that grew 34% to 0.9 million tons, said Topline Securities analyst Furqan Punjani.

Sales of urea, which contributes 73% of total sales, declined by 4% to 3.7 million tons during January to August primarily due to decline in production, which is mainly on account of lower production by Sui-based producers and 60% fall in imports due to a delay.

Company wise data shows that Engro Corporation led the growth with 383% jump in sales followed by Fauji Fertilizer Company with 109% mainly due to continuous gas supply.

Moreover, phosphate production improved by 3% as Fauji Fertilizer Bin Qasim Limited increased its focus on DAP production.

Sky-high                

Engro recorded its highest ever monthly urea production as improved gas flows to Engro Enven, the world’s largest single train fertiliser plant, jumped operations by 35 per cent to 150,000 tons on a monthly basis.

Industry urea sales rebounded strongly in August alone as they grew by 15% to 556,000 tons on a monthly basis on the back of improved gas supply to Sui network plants.

On the price front, urea rates increased by 12% at retail level during August which might increase again in October as Rabi season is right around the corner, said Punjani. However, floods in Sindh might affect total urea sales in September, but will not hamper local manufacturers sales, added Punjani.

Published in The Express Tribune, September 29^th,  2011.