Fertilizer numbers for the first month of CY10 (Jan) have been released by the National Fertilizer Development Centre (NFDC). Urea offtake in Jan‘10 stood at 546.2k tons compared to 598.6k tons in Jan’09 – a decline of 8.8%YoY. DAP sales continued to show strength, registering an offtake of 92.1k tons in Jan’10 compared to an offtake of 44.5k tons in Jan’09 – a growth of 1.07xYoY. Currently, DAP prices stand at PkR2,550-PkR2,600 per bag in the local market while urea prices stand at PkR750 per bag. At current levels, we remain ‘Overweight’ on the Fertilizer sector with Engro being our top pick.
AKD Research
February 26 2010 |
