Pakistan’s urea market remained under pressure in February 2026, with total sales estimated at 250,000 tons, reflecting a 28 percent decline compared to the same month last year, according to Topline Securities. However, volumes are expected to improve 15 percent over January, indicating a partial recovery after a subdued start to the year.
Cumulative urea sales for January and February are projected at 468,000 tons, marking a steep 41 percent drop on a year-on-year basis.
Performance varied across manufacturers. Fauji Fertilizer Company is expected to post February urea sales of 142,000 tons, down 9 percent from a year earlier and 19 percent lower than January.
Engro Fertilizers is projected to sell 66,000 tons, reflecting a 30 percent annual decline but a sharp month-on-month jump due to a weak base in January. Meanwhile, Fatima Fertilizer is estimated to record sales of 21,000 tons, down 69 percent year-on-year and 21 percent compared to the previous month. Other producers are collectively expected to sell 21,000 tons, down 25 percent annually but significantly higher than January levels.
Inventory levels expanded notably during the month. Closing urea stocks are estimated at 0.86 million tons at the end of February, compared to 0.63 million tons in January, suggesting slower offtake at the farm level and ample availability in the distribution channel. Engro Fertilizers is believed to hold the largest share of inventory at 386,000 tons, followed by Fatima Group with 288,000 tons and Fauji Fertilizer Company with 144,000 tons.
Pricing strategies also influenced buying patterns. Engro Fertilizers continued to offer discounts ranging between Rs100 and Rs150 per bag throughout February, maintaining the same incentive structure as January. In contrast, Fauji Fertilizer Company refrained from offering discounts for the second consecutive month after previously providing price concessions through its dealer network.
In the DAP segment, demand showed a strong rebound. February DAP sales are estimated at 79,000 tons, nearly doubling both on a yearly and monthly basis. Fauji Fertilizer Company is expected to lead the segment with sales of 57,000 tons, posting triple-digit growth on both annual and monthly comparisons.
Engro Fertilizers is projected to record DAP sales of 15,000 tons, registering strong year-on-year growth, while other players are estimated at 7,000 tons, reflecting a decline compared to last year. For the first two months of 2026, total DAP sales are forecast at 118,000 tons, up 17 percent from the same period last year.
