--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20260812-nutrien-phosphate-strategic-review-negative-margins/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # Nutrien weighs phosphate future as sulfur costs push Q2 margins negative Publication Date: 2026-08-12T15:00:00-04:00 Last Updated: 2026-08-12T05:04:25-04:00 Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/) Categories: [Markets](https://www.fertilizerdaily.com/markets/), [Corporate](https://www.fertilizerdaily.com/corporate/), [Phosphate](https://www.fertilizerdaily.com/markets/phosphate/) ![Calgary, Alberta, Canada - July 3, 2023: Nutrien Corporate Office on Lake Fraser Drive in Calgary, Alberta, Canada. Nutrien is a company that provides products and services for agriculture.](https://www.fertilizerdaily.com/wp-content/uploads/2026/08/calgary-alberta-canada-july-3-2023-nutrien-corporate-office-on-lake-fraser-drive-in-calgary-alberta-canada-nutrien-is-a-company-that-provides-products-and-services-for-agriculture-stockpack-istock-scaled.jpg) Phosphate production costs rose 26% to $812 per tonne as constrained sulfur supplies squeezed margins, while Nutrien said it expects to determine a path forward for the business this year. Nutrien is reviewing the future of its phosphate business after sharply higher sulfur costs pushed the segment into a negative gross margin in the second quarter of 2026. Phosphate cost of goods sold increased to $812 per tonne from $646 per tonne a year earlier, while gross margin fell to negative $31 per tonne from positive $68. Nutrien said higher sulfur input costs were the primary driver of the increase, despite stronger global phosphate prices. The company said it remains on track to determine the “optimal path” for its phosphate business, Trinidad nitrogen facility and Brazilian retail operations during 2026 as part of a broader portfolio optimization program. Nutrien has divested about $1 billion of non-core assets since the fourth quarter of 2024, including agreements reached since June for approximately $90 million of additional asset sales. The company has not specified whether the phosphate review could result in a sale, partnership, restructuring or another option. Phosphate sales volumes nevertheless increased to 590,000 tonnes in the quarter from 543,000 tonnes a year earlier, supported by reliability improvements completed in 2025. Nutrien maintained its full-year phosphate sales guidance at 2.4 million to 2.6 million tonnes, although its P2O5 operating rate declined to 75% from 79%. The weakness contrasted with the company’s potash business, which generated a gross margin of $154 per tonne in Q2 and record first-half production, while first-half nitrogen adjusted EBITDA rose to $1.12 billion. Nutrien said constrained sulfur availability and elevated costs continue to put “unsustainable pressure” on global phosphate producer margins. Any divestiture would reshape the North American phosphate supply picture, where [Mosaic is also curtailing output](https://www.fertilizerdaily.com/?p=47462) under similar sulfur cost pressure. Source: [AgNavigator](https://www.agnavigator.com/Article/2026/08/06/fertilizer-market-nutrien-reports-phosphate-nitrogen-declines-in-q2-2026/) Tags: [divestment](https://www.fertilizerdaily.com/tag/divestment/), [fertilizer prices](https://www.fertilizerdaily.com/tag/fertilizer-prices/), [Nutrien](https://www.fertilizerdaily.com/tag/nutrien/), [phosphate](https://www.fertilizerdaily.com/tag/phosphate/), [Phosphate fertilizer](https://www.fertilizerdaily.com/tag/phosphate-fertilizer/), [sulfur](https://www.fertilizerdaily.com/tag/sulfur/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.