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Mosaic further curbs phosphate production in Brazil

Mosaic further curbs phosphate production in Brazil

Sao Paulo, 8 July (Argus) — US fertilizer producer Mosaic said on 8 July it will further reduce its phosphate operations in Brazil because of global constraints on the feedstock's supply that have been pressuring production costs. With feedstock supply constrained, especially out of the strait of Hormuz , blending operations at Candeias, in northeastern Bahia state, and Catalao, in central-western Goias state, will be temporarily suspended. Both units have a combined production capacity of 2.5mn metric tonnes (t)/yr. Output will be reduced in Mosaic's 1mn t/yr unit in Palmeirante, in northern Tocantins state, and in the 700,000 t/yr unit in Sorriso, in central-western Mato Grosso state. Mosaic did not detail the cuts' scale. A gradual mothballing of Mosaic's 1mn t/yr plant in Uberaba, also in Minas Gerais state, is also planned, starting in September. Faced with reduced global supply and rising sulfur prices, Mosaic revised its operational plan for the second half of 2026 and temporarily adjusted production at its facilities. Mosaic had previously announced a temporary shutdown of phosphate rock production at its Tapira unit , in Minas Gerais state, which is set to be extended. The plant's capacity sits at 2.2mn t/yr. Phosphate rock production at the company's Catalao unit was also paused. The Fospar unit in Paranagua, in southern Parana state, will continue to operate normally, while fertilizer production is expected to proceed until the end of September, when sulphuric acid inventories are projected to run out, Mosaic said. The unit blends over 500,000 t/yr of fertilizers. The 600,000 t/yr unit in Cajati, in southeastern Sao Paulo state, will remain operational, supported by sulfur imports to maintain output of animal nutrition product, or monocalcium and dicalcium phosphate. The curtailments are a temporary response to extraordinary market conditions and do not represent a shift in the company's long-term strategy, Mosaic told Argus . It expects to resume full operational capacity as the global supply of sulfur normalizes. The restrictions in Brazil are expected to remain in place until sulfur supply and prices stabilize and international maritime transport routes return to normal, it said. Mosaic had announced the closure and sale of its 243,000 t/yr P2O5 Araxa SSP production site in Minas Gerais in early April. It also idled mining activities at its 1.3mn t/yr Patrocinio mine, also in Minas Gerais. Mosaic will also further reduce output in the US at its Bartow, Florida, and Faustina, Louisiana, facilities. Production at plants in Riverview, Florida, and Uncle Sam, Louisiana, will also be reduced. By Bruno Castro Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.