October 26, 2003	Sunday	Sha’aban 29, 1424

KARACHI, Oct 25: Demand for fertilizer (Urea) jumped 28 per cent to 0.236 million tons during September 2003, compared with 0.184 million tons in the corresponding month of last year.

“The industry urea sales volume for nine months to September 2003 stood at 2.9 million tons, which was unchanged from last year”, Engro Chemical Pakistan said in its third quarter report released on Wednesday. National Fertilizer Development Corporation (NFDC) unveiled identical figures and stated that urea sales had improved with the onset of the Rabi season amidst enhanced water availability and improved farmer cash flow position. According to NFDC, the availability of credit appeared adequate both from commercial and private banks.

Urea sales in Punjab shot up by 47 per cent but the offtake in Sindh edged up by a slower 4 per cent. On the other hand, DAP demand during September 2003 portrayed a 10 per cent year-on-year decline.

The NFDC report stated that prospects of rice and sugarcane crops were good. While the size of cotton crop was unclear on account of the late pest attack, price of seed cotton, nonetheless, was very good and clearance of cotton fields for wheat sowing looked to be delayed in some areas. Urea inventory levels at end-September stood at 0.515 million tons, which represented a 39 per cent increase over the preceding month. DAP inventory levels were at 0.194 million tons, which was about the same as last month.

Engro Chemical stated that all urea plants in the country had operated smoothly during the period. Total industry production for the period to September 2003 was up 5 per cent to 3.3 million tons compared to 3.2 million tons achieved during same period the previous year.

“Price of urea in the domestic market remained essentially unchanged as the price increase to recover gas price rise was rolled back as desired by the government”, stated directors at Engro, adding that relative to imported urea, the price of locally produced urea was lower by approximately 30 per cent.

Fertilizer sector analysts commented that international urea prices during the month of September 2003 had shown a mixed trend. FOB bulk Yuzhny urea prices during September were quoted at $144-145 per ton. Prices of Middle East bagged urea rose to $168-170 per ton as against $157-162 per ton during the previous month. DAP prices weakened in the US Gulf and