Urea Sales Drop 41% in First Two Months of 2026, DAP Sales Rise

Urea sales in Pakistan experienced a significant decline of 41 percent during the first two months of 2026, familiar with the matter. Data indicates that total urea offtake for January and February stood at 468,000 tonnes, marking a substantial decrease compared to the same period last year.

In February alone, urea sales reached 250,000 tonnes. This figure represents a 28 percent year-on-year decrease but shows a 15 percent increase compared to January. The month-on-month recovery in February was attributed to a normalisation in buying activity, following an exceptionally weak January. The subdued demand in January was linked to heavy advance purchases in December 2025, when sales reached 1.36 million tonnes, which kept overall demand relatively soft in the subsequent months.

Industry sources noted that discount practices among manufacturers remained largely unchanged in February. Engro Fertiliser continued to offer discounts of Rs100-150 per bag, consistent with the previous month. In contrast, Fauji Fertiliser did not provide any discounts for the second consecutive month, according to reports.

While urea sales declined, diammonium phosphate (DAP) sales showed an upward trend. Total DAP sales in February were recorded at 79,000 tonnes, compared to 40,000 tonnes in February 2025. For the first two months of 2026, total DAP sales reached 118,000 tonnes, reflecting a 17 percent year-on-year increase. The closing inventory of DAP at the end of February was reported to be around 273,000 tonnes.

Muhammad Abdur Rafay of Topline Securities stated that urea sales are expected to remain stable in 2026, with sources indicating a possible easing in supply conditions.