Mosaic Co. Reports Net Loss Amid Sulfur Price Spikes

The Mosaic Company, the largest phosphate producer in the United States, reported a second-quarter net loss caused by surging sulfur costs. Sulfur prices rose from an average of $379 per long ton in the first quarter to $522 in the second, a spike driven by the closure of the Strait of Hormuz and a blockade in Kazakhstan.

In response to these costs, Mosaic idled its plant in Faustina, Louisiana, reduced operations at its Bartow, Florida, facility to 40% of its target, and curtailed production in Brazil. CEO Bruce Bodine stated that current industry economics cannot accommodate these prices, which he described as unsustainably high.

While Mosaic struggled, competitors Nutrien Ltd. and CF Industries Holdings Inc. remained more stable or reported windfalls by focusing on nitrogen fertilizers. This downturn for Mosaic coincided with a June decision by the U.S. government to suspend duties on Moroccan phosphate for eight months to assist farmers facing inflation.