Despite an ongoing slump in the phosphate market, officials at PotashCorp remain optimistic about the market’s potential in the second quarter of 2017.

First-quarter reports showed phosphate market sales still trending downward, but improving slightly since the last quarter of 2016. Q1 gross margin came to $11 million, as compared to $39 million earned in Q1 2016. The fourth quarter of 2016, however, only saw a gross margin of $8 million, according to a press release.

In a previous interview, PotashCorp Chief Executive Officer Jochen Tilk attributed market challenges to an overall weaker market for the liquid crop fertilizers that require nutrients, such as phosphate.

“Spot prices for most phosphate fertilizer products strengthened from those realized late in 2016, but remained well below that year’s first quarter. Prices for feed and industrial products continued to trend lower in the first quarter and remained below prior-year levels, due primarily to increased supply from offshore producers,” a release stated.

United States production fell from 1.264 million short tons in Q4 2016, to 1.139 million short tons in Q1 2017 — a drop of about 10 percent, according to data compiled by The Fertilizer Institute.

Exports dropped by about 3 percent from Q4 2016 to Q1 2017, but as compared to the first quarter of 2016, were up by almost 7 percent, according to TFI data.

PotashCorp officials say, despite the setbacks, they are hopeful for the rest of 2017 because of the rise of seasonal demand and higher input costs, which will likely lead to a higher cost of goods to sell. PotashCorp’s fast-approaching completion of a merger with agricultural product company Agrium Inc. is also expected to give the company a boost in operating resources.

“We continue to work through the regulatory process in key jurisdictions and remain confident the transaction will close mid-2017. Our integration teams are working hard to position the combined company for growth — including achievement of our synergy targets — and to ensure we can create value for all our stakeholders,” Tilk said in a statement.

PotashCorp will reassess market data after the close of the second quarter, which ends June 31.

PotashCorp’s phosphate mine operation in Aurora employees more than 800 people in Beaufort and surrounding counties.