Karachi: Pakistan's urea sales reached a 75-month low in January 2026, with figures expected to be around 218,000 tons, marking an 84% decline from the previous month and a 51% decrease from the same period last year. This decline comes on the heels of substantial advance purchases in December 2025, driven by significant manufacturer discounts that led to record sales of 1.36 million tons.
According to JS Global, the reduction in discounts offered by manufacturers contributed to the sales drop in January. Engro Fertilizers (EFERT) reduced its discounts to Rs100-150 per bag, down from Rs400 in December, while Fauji Fertilizer Company (FFC) eliminated its discounts entirely after offering Rs150-200 per bag the previous month. This rollback in discounts, coupled with the tapering of seasonal Rabi demand, resulted in an increase in urea inventory levels to approximately 630,000 tons, up from 320,000 tons in December.
Company-specific data shows that EFERT experienced a significant decline in sales, with a 96% drop from the previous month to 24,000 tons in January. FFC recorded urea sales of 175,000 tons, a 54% month-on-month decrease, while Fatima Group (FATIMA) reported sales of 7,000 tons, down 97% from December. Among the companies, FATIMA holds the highest inventory at 220,000 tons, followed by EFERT with 264,000 tons, and FFC with 90,000 tons.
In addition to urea, total DAP sales in January were projected at around 34,000 tons, a 58% decline from December and a 45% decrease year-on-year. FFC and EFERT recorded DAP sales of 20,000 and 11,000 tons, respectively, with a closing inventory of approximately 275,000 tons.
Looking ahead, JS Global anticipates that urea sales will stabilize throughout 2026 as seasonal demand levels out and the aggressive discount strategies seen in late 2025 subside.
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