Engro to make more profit by raise in urea rate

KARACHI - Engro fertilizers is likely to be the most advantageous as rising gas prices will also drag urea prices further north. Experts said that FFC is also likely to maintain its health backed by efficient production and a hand in the DAP market through stake in sole DAP manufacturer of the country. Presently, the urea demand saw shrinkage for second consecutive month during calendar year 2010 indicating that urea demand growth is likely to lose the steam gathered during the last two years. The manufactures have raised urea prices by PKR 30/pag in middle of this month and this is likely to squeeze urea demand further. At the price of PKR 780/bag, locally produced urea is selling at approximately 40 percent discount to import it. Therefore despite descending demand, manufacturers are likely to take advantage of disparity in pricing until supply deficit remains. NFDC released fertilizer numbers for the month of Feb 2010. Urea offtake witnessed a 26 percent Year on Year contraction standing at 354kt in Feb, 2010 despite no change in urea ex-factory prices, which remained at PKR750/bag.