Wedoany.com Report-Dec.18, The Mosaic Company, a major U.S. fertilizer producer, has temporarily suspended single super phosphate (SSP) production at two facilities in Brazil due to significant rises in sulfur prices during 2025.

Operations have been idled at the Fospar plant in southern Paraná state and the Araxa site in southeastern Minas Gerais state. The company has also paused sulfur procurement. Mosaic indicated that it may reassess these measures after 30 days.

Global sulfur prices have climbed steadily, driven by demand from metals processing and battery manufacturing sectors, in addition to fertilizer needs. In Brazil, prices increased nearly threefold to US$528 per tonne cfr as of December 11, compared to US$178 per tonne at the end of 2024. The upward movement accelerated after February 20, when prices stood at US$192 per tonne cfr. Current levels exceed the US$525 per tonne peak recorded in 2022, the highest since assessments began in 2012.

During August to October, domestic SSP sales in Brazil—including output from producers such as Galvani and CMOC—were completed at rates below import parity. This contributed to downward pressure on fertilizer values, reaching US$175-180 per tonne cfr at ports. Export prices declined to US$255 per tonne fob Paranaguá in southern Paraná and US$288 per tonne fob Rondonópolis in central-western Mato Grosso during October, marking the lowest since 2023.

These adjustments reflect Mosaic's response to evolving raw material costs while maintaining operational flexibility. Sulfur, a key input derived from oil refining, has experienced volatility influenced by multiple industrial applications.

The temporary halts aim to align production with current economic conditions in the phosphate fertilizer segment. Brazil remains an important market for SSP, supporting agricultural requirements across various regions.

Market observers note that sustained high sulfur values could influence fertilizer pricing and availability in the near term. Domestic producers continue to monitor developments to balance supply commitments with input expenses.

Mosaic's facilities in Paraná and Minas Gerais represent significant capacity within the Brazilian phosphate sector. The brief suspension period allows for evaluation of potential resumption based on price stabilization or other factors.

Overall, these measures illustrate adaptive strategies in the fertilizer industry amid fluctuating commodity markets. Stakeholders anticipate updates as Mosaic completes its review within the stated timeframe.