Fertilizer producer Mosaic today announced the closure and sale of its 243,000 t/yr P2O5 Araxa SSP production site in Brazil's southeast Minas Gerais state.
Mosaic said it will also idle mining activities at the 1.3mn t/yr Patrocinio mine, also in Minas Gerais.
The producer explained that the closure of the facility will reduce its phosphate output by an estimated 1mn t/yr, and that the decision is aimed at reducing costs.
Mosaic did not comment on activity at its Fospar SSP production site in southern Parana state, which had stopped production in December last year.
The decision comes as sulphur prices continue to firm. Mosaic first idled Araxa and Parana on 16 December, pinning the decision on a sharp increase in sulphur prices. At the time, sulphur costs had already reached $540-550/t cfr Brazil. The latest weekly assessment puts sulphur at $720-730/t cfr Brazil.
