Engro raises DAP prices

Engro increases prices of fertiliser by Rs30 to Rs2,530 per 50kg bag.

KARACHI: Engro increased prices of DAP fertiliser on Wednesday by Rs30 to Rs2,530 per 50kg bag on the back of an upswing in international prices, according to IGI Securities.

The impact of the 1.2 per cent price increase will be marginal on Engro as dealers are already holding significant inventory levels and remain cautious about the impact of floods on di-ammonium phosphate (DAP) demand, said IGI Securities analyst Sarah Afridi.

International prices have gone up to $540 per ton from an average of $510 per ton in August.

DAP sales have been relatively better in the months of August and September on speculation about increasing international prices and dealer incentives, company officials said.

The company still holds significant DAP inventory of 150,000 tons, with major sales expected to kick in from mid-October on the back of wheat sowing, said Afridi. The increased price is effective from September 9.

Published in The Express Tribune, September 23^rd, 2010.