Fertiliser: Fauji to increase DAP price

KARACHI: Fauji Fertilizer Company is set to increase the price of its Sona DAP by Rs139 per bag; most likely to offset the impact of the depreciating rupee, says a research note from Burj Capital. International DAP prices have increased by 3% during the second quarter of 2012, while the rupee has shed 4.9% against the US dollar in the same period. The new price, effective from July 10, 2012 will be Rs3,909 per bag. In the coming months, DAP demand is anticipated to increase marginally over the corresponding period last year owing to lower prices during the Kharif season, while DAP primary margins during the season  are expected to be $245 per ton; down 31% Year-on-Year from $320 per ton in the corresponding period last year.

Published in The Express Tribune, July 5^th, 2012.