Fertiliser demand declines by 68 per cent in first half
Fertiliser demand has slumped during the current year on the back of high prices.
KARACHI:
Fertiliser demand has slumped during the current year on the back of high prices. Data released by the National Fertiliser Development Authority revealed that demand for di-ammonium phosphate (DAP) stood at an unimpressive 45,000 tons in June, down by a whopping 68 per cent compared to June 2009.
Demand for urea registered only a seven per cent rise, in comparison to a volume of 580,000 tons during the same period last year.
Compared to the month of May, demand for DAP has tumbled by 32 per cent while urea off-take was down by seven per cent.
Similarly, cumulative demand for fertiliser in the first half of the current year has also been relatively low with urea off-take up by a nominal two per cent, compared to the first half of the previous calendar year, to 303,700 tons.
Demand for DAP fell by a significant 32 per cent to 326,000 tons compared to the same period last year.
Though fertiliser off-take has so far been lower than last year, analysts expect it to improve in the remaining months of the current calendar year.
Research analyst for AKD Securities, Usman Zahid, stated “earlier accumulation and lower-than-expected rainfall were the major reasons for the low off-take, however, the situation is likely to improve following recent rains across the country.”
Experts say that the demand for DAP has been significantly affected by rising international prices and they are not ruling out further increases in prices of either urea or DAP.
Zahid stated “while the government has given a July 31 deadline for stopping gas curtailment, any prolonged and extended curtailment can lead to another round of price increase.”
In a recent press release, Chairman Engro Asad Umar commented “if gas curtailment continues it may affect the (fertiliser) industry’s production which may alter demand and supply situation for Rabi crop season as well as the agriculture sector.”
Published in The Express Tribune, July 30th, 2010.
Fertiliser demand has slumped during the current year on the back of high prices. Data released by the National Fertiliser Development Authority revealed that demand for di-ammonium phosphate (DAP) stood at an unimpressive 45,000 tons in June, down by a whopping 68 per cent compared to June 2009.
Demand for urea registered only a seven per cent rise, in comparison to a volume of 580,000 tons during the same period last year.
Compared to the month of May, demand for DAP has tumbled by 32 per cent while urea off-take was down by seven per cent.
Similarly, cumulative demand for fertiliser in the first half of the current year has also been relatively low with urea off-take up by a nominal two per cent, compared to the first half of the previous calendar year, to 303,700 tons.
Demand for DAP fell by a significant 32 per cent to 326,000 tons compared to the same period last year.
Though fertiliser off-take has so far been lower than last year, analysts expect it to improve in the remaining months of the current calendar year.
Research analyst for AKD Securities, Usman Zahid, stated “earlier accumulation and lower-than-expected rainfall were the major reasons for the low off-take, however, the situation is likely to improve following recent rains across the country.”
Experts say that the demand for DAP has been significantly affected by rising international prices and they are not ruling out further increases in prices of either urea or DAP.
Zahid stated “while the government has given a July 31 deadline for stopping gas curtailment, any prolonged and extended curtailment can lead to another round of price increase.”
In a recent press release, Chairman Engro Asad Umar commented “if gas curtailment continues it may affect the (fertiliser) industry’s production which may alter demand and supply situation for Rabi crop season as well as the agriculture sector.”
Published in The Express Tribune, July 30th, 2010.