The global phosphates market has declined, as financial woes caused uncertainty and depreciating currencies.
Demand from the US, Europe and Latin America expected late last year failed to show, prompting a sharp downward correction in export prices.
Cuts in diammonium phosphate (DAP) output for the first quarter by major US, Russian and North African producers provided some support to the weak market but scant demand threatens to continually undermine prices.
Feedstock prices have also tumbled on the back of price declines for the finished products, with quarterly phosphoric acid settlements reflecting the market fall in late December.
At the raw material end, phosphate rock prices are stable but the overall phosphates outlook going into the second quarter is bearish.
Indian demand, which accounts for almost 50% of globally traded DAP, remains central to whether the supply side can gain some traction and revive the sluggish market.
Upticks in the US domestic market and a late surge in India will firm the market, but it remains to be seen if prices achieved last year will prove workable.