Pakistan's DAP stocks on the rise

Weak demand has led to an increase in Pakistan's DAP (Di-Ammonium Phosphate) stocks despite a decrease in imports. The National Fertilizer Development Centre (NFDC) reports that DAP inventories grew by 42,000 tons last month, as sales to end users continued to underperform. In May, Fauji's Ben Qasim plant produced 74,000 tons domestically, and combined with imports of 34,000 tons, it offset an offtake of 66,000 tons. By the end of May, stocks reached 333,000 tons, which is a decrease from 370,000 tons compared to the previous year.

Sales to end users dropped to 66,000 tons in May, down from 94,000 tons. This year, DAP offtake has remained low due to elevated retail prices, a trend that started in late summer of the previous year. From January to May, sales amounted to 362,000 tons, representing a 26% decrease compared to the same period last year.

Both imports and production experienced declines. Imports decreased from 44,000 tons in May of the previous year, and domestic output slipped from 79,000 tons. Domestic DAP consumption remained low as sales were sluggish, primarily due to delayed harvests, which hindered farmer purchases for applications. Although importers may resume activity in August and September before the winter Rabi season, there is currently limited buying interest.