Fertilizer producer The Mosaic Company has announced the closure and sale of its Araxa SSP production facility in Brazil, as rising input costs continue to pressure phosphate producers.
The shutdown of the 243,000 t/yr P2O5 Araxa SSP plant in Minas Gerais is expected to reduce the company’s phosphate output by approximately 1mn tonnes per year. Alongside this, Mosaic will also idle mining operations at its 1.3mn t/yr Patrocinio mine, further tightening supply.
Cost Reduction Strategy Behind Closure
The company stated that the move is part of a broader strategy to reduce operational costs. High raw material expenses, particularly sulphur, have significantly impacted production economics in recent months.
Sulphur Prices Drive Decision
The closure follows a sharp rise in sulphur prices, which are a key input for phosphate production. Sulphur prices delivered to Brazil have surged from $540–550/t CFR in December to around $720–730/t CFR, creating strong cost pressure.
Mosaic had already idled its Araxa and Parana operations in December, citing the same reason of escalating sulphur costs.
Uncertainty Around Other Operations
The company has not provided an update on its Fospar SSP production site in Parana, which has remained offline since December. Market participants are closely watching whether further production cuts could follow.
Market Impact
The closure is expected to:
- Reduce phosphate supply in Brazil
- Support firm phosphatic fertilizer prices
- Increase dependency on imports
Outlook
With sulphur prices remaining elevated, phosphate producers may continue to face margin pressure. The Mosaic Araxa SSP closure highlights how rising raw material costs are reshaping production decisions in the global fertilizer market.
