Mosaic Posts $373 Million Loss as Iran Conflict Disrupts Nearly Half of Global Sulfur Trade
Updated
Updated · Bloomberg · May 11
Mosaic Posts $373 Million Loss as Iran Conflict Disrupts Nearly Half of Global Sulfur Trade
3 articles · Updated · Bloomberg · May 11
Mosaic reported a $373 million loss as the Iran war choked sulfur flows through the Strait of Hormuz, squeezing margins for the largest US phosphate fertilizer producer.
Nearly half of global sulfur trade and about one-fifth of phosphate trade depend on the waterway, turning higher fertilizer prices into a cost shock rather than a profit boost.
Record sulfur and sulfuric acid prices had already pushed Mosaic into a first-quarter net loss, forced production curtailments and prompted it to withdraw phosphate output guidance.
The company also cut planned capital spending to $1.25 billion from $1.5 billion, underscoring how the Middle East conflict is rippling through fertilizer supply chains.
As rivals gain, is Mosaic’s production cut a survival tactic or a long-term play for market control?
The Iran war has choked global fertilizer supply. How close are we to a food security crisis?