Mosaic cuts phosphate output at four U.S. plants as critical sulfur shortage bites

Mosaic said on July 8 it will further reduce phosphate operations at four North American plants and multiple Brazilian facilities, as sulfur supply from the Gulf remains disrupted by the Strait of Hormuz conflict.

The producer will deepen output cuts at its Bartow, Florida, and Faustina, Louisiana, plants, which already had reduced operating rates earlier this year, and will now also reduce production at its Riverview, Florida, and Uncle Sam, Louisiana, facilities. Mosaic did not disclose the scale of the pullback at any single site, though multiple customers told Argus they expect Faustina to halt entirely, having already been idled once this year.

“These actions are a temporary response to extraordinary market conditions and do not change the company’s long-term strategy or commitment to global agriculture,” Mosaic said in a statement.

In Brazil, Mosaic is temporarily suspending blending operations at its Candeias and Catalao units, which have combined capacity of 2.5 million tonnes a year, while reducing output at its Palmeirante and Sorriso plants. A gradual mothballing of its 1 million tonne per year Uberaba plant is planned starting in September. The company said restrictions will stay in place until sulfur supply and prices stabilize and Gulf shipping routes return to normal.

The curtailments follow Mosaic’s May decision to withdraw its 2026 phosphate production guidance of at least 7 million tonnes. They also come roughly a week after the U.S. government paused countervailing duties on Moroccan phosphate imports for eight months, opening the door for more OCP tonnes to enter the U.S. market even as domestic supply tightens. Mosaic detailed its exposure to Gulf sulfur costs in a June credit-facility refinancing disclosure, when it guided second-quarter DAP prices to $760-$780 a tonne.

Source: Argus Media