Mosaic sees tightening in phosphate fertilizer market

17 July 2012 16:26  [Source: ICIS news]

Mosaic CEO Jim ProkopankoHOUSTON (ICIS)--The phosphate fertilizer market has tightened in recent months as producer inventories dropped dramatically, the CEO of US-based fertilizer firm Mosaic said on Tuesday.

“Global demand [is] more than offsetting lower sales to India,” Jim Prokopanko told analysts during an earnings conference call.

“We project that the global phosphate market will remain tight” amid continued supply uncertainties, Prokopanko said.

Global phosphate shipments should reach 63m tonnes this year and then climb to 64m-66m tonnes in 2013, he said. In 2011, shipments were just under 60m tonnes.

Mosaic's phosphates business ended the fiscal 2012 fourth-quarter on a strong note as the business improved sequentially from the third quarter.

However, overall Mosaic reported a 22% year-on-year decline in net income for the three months ended 31 May, largely because of lower phosphate prices.

Meanwhile, ammonia prices have increased but Mosaic expects these cost increases to be offset by higher finished product prices, Prokopanko said.

Prokopanko added that Mosaic is looking at the feasibility of building a new ammonia plant to further improve its costs position. The company expects to make a decision on the project towards the end of 2012, he said.

By: Stefan Baumgarten
+1 713 525 2653

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