The American company Mosaic intends to suspend the production of phosphorus fertilizers at the Plants of Uncle Sam and Faustina (Louisiana). This decision is dictated by the fact that the increased imports led to a fall in the price of phosphorus fertilizers in the U.S. domestic market. Due to weak demand, phosphorus fertilizer prices have been under pressure since late 2018, while capacity expansion in Morocco and Saudi Arabia has led to an increase in their production and exports.
The company also announced a temporary suspension of potassium chloride production at Colonsay in Saskatchewan, Canada. In June of this year, mosaic finally closed its phosphate plant in Plant City, Florida, in june this year due to cost-cutting. The company forecasts a strong decline in autumn fertiliser in North America, as well as a more balanced picture of global supply and demand by 2020.
Mosaic’s Brazilian division has already cut costs by $275 million. Usd. this year and intends to reduce them by 200 million. Usd. by 2022. Due to heavy rains and floods in the United States, the company was forced to revise its financial forecasts for 2019.