LAHORE - The urea sales has broken all records in the concluding month of June, as it has reached close to the mark of 900,000 tons during the month, fertilizer industry sources disclosed.

This is evident by the fact that with few days earlier data of this month indicates that sales have reached 830,000 tons, they said.

According to them, last time such a huge monthly sales was witnessed in Dec 2009 when 912,000 tons of urea sold in a single month. But December is usually a peak season for urea, they added.

Farhan Mahmood, a fertilizer industry expert, observed that such a huge recovery in June sales is due to pre-buying amid expected increase in urea prices if gas-cess is imposed and recovery in overall demand after lower than average sales in first 5 months.

Out of 900k tons likely sales in June, sales of local branded urea would be around 95 per cent mainly led by record sales of FFC and Engro.

So far in June, imported urea available with NFML is estimated to be around 130-140k tons which also include portion of 100k tons tender floated few weeks back. Further local manufacturers are estimated to hold around 400k tons compared to 800k tons at the beginning of June 2012.

With June sales, first six months total urea sales will be approximately 2.6 million tons, down 2 per cent. Local companies sales are estimated at 1.7 million tons down 26 per cent.