Mosaic cuts Brazil phosphate output amid tight sulfur supply, rising costs

Mosaic will temporarily cut phosphate production at its Brazil operations in response to tightening global sulfur supply, the resumption of shipping risks through the Strait of Hormuz and higher input costs, it said July 8.

"The company revised its operating plan for the second half of 2026 and decided to temporarily adjust production at certain Brazilian units, amid reduced global supply and rising sulfur prices," Mosaic said in a statement to Platts, part of S&P Global Energy.

For its Brazilian production assets, the company reported that a "gradual hibernation" of phosphate fertilizer production at the Uberaba complex in Minas Gerais state is expected to begin in September due to ongoing limitations on sulfur supply.

The Fospar Port asset in Paranaguá, Paraná state, will continue operating normally, with phosphate fertilizer production expected to continue until the end of September, when sulfuric acid inventories are "expected to run out," Mosaic said.

The Fospar phosphate plant has a 520,000 metric ton/year capacity for single superphosphate, while the Uberaba phosphate complex has a 1 million mt/y capacity for monoammonium phosphate, 400,000 mt/y for SSP, and 300,000 mt/y for triple superphosphate, according to S&P Global Energy CERA data.

"Cajati asset, located in São Paulo, phosphate production will continue operating, with support from sulfur imports to maintain animal nutrition production," Mosaic said.

The company also reported that the "previously announced temporary shutdowns" at its production units in Tapira, Minas Gerais state and Catalão, Goias state, should be extended.

The temporary idling of operations at Tapira and Catalão was aimed at balancing rock production sent to the Uberaba unit, which is operating at a reduced load, according to Mosaic told Platts in May.

For fertilizer blending units in Candeias, Bahia state, and Catalão, Goias state, the company will temporarily halt operations, with possible impacts on the workforce depending on the completion of negotiations with the unions.

"In the blending units of Palmeirante, Tocantins state and Sorriso, Mato Grosso state, production will be reduced, with possible effects on staffing," Mosaic said.

The Palmeirante blending facility was inaugurated in July 2025, with a new 1 million mt/year capacity, aiming to boost sales in a North-Northeast market considered strategic for the company.

"The duration of the restrictions remains uncertain and will depend on external factors, including the stabilization of sulfur prices, the normalization of global supply chains, the reopening of international shipping routes, and the evolution of the geopolitical landscape," Mosaic said.

Mosaic said it expects to resume full phosphate operating capacity as global sulfur supply normalizes.

"The measures adopted are a temporary response to extraordinary market conditions and do not represent a change in the company's long-term strategy," the company said.

Sulfur supply disruption

Previously, Mosaic planned to halve output at its Louisiana and Bartow, Florida, phosphate plants beginning in May to limit incremental sulfur purchases amid elevated prices, the company said during its first-quarter earnings call May 11.

The temporary measure was to allow Mosaic to limit its need for incremental sulfur at current prices, waiting for "normalized" market conditions.

However, it was expected that additional production in Brazil would be scaled back as part of a revised 2026 operating plan.

Now, due to the temporary phosphate cuts, Mosaic is evaluating alternative raw-material sources and maintaining dialogue with union representatives, business partners, and government authorities.

"Sulfur is an essential raw material for the production of phosphate fertilizers," Mosaic said July 8. "For every 10 metric tons of diammonium phosphate or MAP fertilizer produced, 4 mt of sulfur are required."

Platts, part of S&P Global Energy, assessed bulk MAP South-Southeast and North-Northeast at $880/mt CFR Brazil on July 8, flat week over week.

Platts assessed granular sulfur at $1,200/mt CFR Brazil on July 8, up from prewar levels of $525/mt CFR Brazil Feb. 26.