Over the past few weeks, the prices of key raw materials like sulphur and phosphate rock have remained high, putting significant pressure on phosphate producers' profit margins. Sulphur prices continue to rise due to limited supply at ports, with sellers optimistic but end-user demand uncertain. Prices could rise further if new market factors emerge, increasing production costs.

Phosphate rock prices also stay elevated, with little expected volatility. Ammonia prices are supported by low stock levels, adding to production cost pressures. As a result, many phosphate producers are operating at a loss, struggling to absorb rising costs while facing stagnant demand.

Despite these challenges, phosphate prices remain relatively firm, especially with China’s spring fertilizer season driving demand. However, the market remains tight, and the ability for producers to pass on higher costs is limited. In the coming months, the sustainability of current price levels and profit margins will depend on whether demand can keep up with high production costs and tight supply.