Mosaic curtails phosphate production in Brazil as sulfur prices surge

The Mosaic Company said it has begun idling single super phosphate (SSP) production at two facilities in Brazil, citing a sharp rise in sulfur prices that has eroded margins for phosphate-based fertilizers.

The US-based fertilizer producer said Tuesday, December 16, that it has started activities to idle SSP units at its Fospar plant in Paraná state and its Araxá facility in Minas Gerais. Mosaic has also suspended future purchases of sulfur, a key input for phosphate fertilizers, and said it may review the decisions after 30 days.

The move underscores growing cost pressures across the global fertilizer industry, where sulfur prices have surged amid stronger demand from metals processing and battery manufacturing, tightening supply for agricultural producers. Brazil is one of Mosaic’s most important international markets and a major hub for phosphate fertilizer consumption.

Sulfur prices in Brazil have nearly tripled in 2025, rising to about $528 per metric ton CFR on December 11, up from $178 per ton in late 2024. Prices accelerated after February, when sulfur was trading near $192 per ton CFR, and have now surpassed the $525-per-ton peak reached in 2022 following the outbreak of the Russia-Ukraine war, according to market assessments.

At the same time, fertilizer pricing dynamics in Brazil have remained weak. Between August and October, several domestic SSP sales—including volumes produced by Mosaic competitors such as Galvani and CMOC—were concluded below import parity, pushing fertilizer prices down to roughly $175–$180 per ton CFR at ports. Export prices fell to $255 per ton FOB at Paranaguá and $288 per ton FOB at Rondonópolis in October, the lowest levels since 2023.

Mosaic did not disclose the production capacity of the affected SSP units.

In a statement, the company said it remains focused on maintaining competitiveness in global markets while supporting reliable fertilizer availability. Mosaic’s Brazilian operations play a key role in supplying crop nutrients to one of the world’s largest agricultural producers.

Mosaic is one of the world’s leading producers and marketers of phosphate and potash fertilizers and also develops biological crop solutions through its Mosaic Biosciences platform. The company supplies phosphate, potash and biological products to agricultural markets worldwide.