Portuguese 
EuroChem is considering reducing part of the production at the Serra do Salitre Mining and Industrial Complex in Minas Gerais and temporarily suspending contracts for approximately 600 workers for up to three months starting in September due to international shortages and a sharp rise in sulfur prices, a key raw material for producing phosphate fertilizers.
An industrial complex inaugurated just over two years ago to help Brazil reduce its dependence on imported fertilizers may have to slow down precisely due to a lack of a raw material sourced from abroad. In Minas Gerais, EuroChem is discussing measures to preserve operations at Serra do Salitre in light of the global sulfur scarcity.
According to information from Broadcast/Agência Minera, the company presented to the union the possibility of temporarily suspending around 600 work contracts for a period of up to three months starting in September. The unit has approximately 1,100 workers, meaning that more than half of the workforce could be affected by the potential layoffs.
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Sulfur Stock Puts September at the Center of Decisions
The immediate issue lies in supply. Sources monitoring the negotiations indicate that the available stock would allow normal operations to continue only until September unless there is a significant improvement in the international supply of the raw material.
EuroChem confirmed that it is facing shortages and sharp increases in sulfur prices but emphasized that no suspension or layoff has been formally decided. The company also stated that it is seeking alternatives with suppliers, sector entities, and the Federal Government to try to increase the supply available to the Brazilian market.
Sulfur is essential for producing sulfuric acid, which is used in converting phosphate rock into fertilizers. Without this input, a facility that has domestic ore, chemical plants, and installed industrial capacity cannot maintain its entire production process under normal conditions.
$1 Billion Project Born to Reduce External Dependency
Inaugurated in March 2024, the Serra do Salitre Mining and Industrial Complex received an investment of nearly $1 billion and was presented as one of the main bets to increase national production of phosphate fertilizers.
The projected capacity reaches 1 million tons per year, a volume that, according to EuroChem, could represent approximately 15% of Brazil’s phosphate production. The facility includes an open-pit phosphate mine, mineral processing, acid production, and fertilizer manufacturing.
The contradiction is now noteworthy. The project utilizes phosphate extracted in Minas Gerais but remains exposed to the international availability of sulfur, demonstrating that increasing domestic fertilizer production does not automatically eliminate all external dependencies in the chain.
Sulfur Prices Skyrocketed and Brazil Lost Supply
Data from S&P Global highlights the scale of the crisis. The price of granular sulfur delivered in Brazil reached about US$ 1,200 per ton in July, following a period of around US$ 525 before the escalation of international tensions in 2026.
Brazilian imports also decreased. Between January and June, the country purchased approximately 709,000 tons, a drop of about 42% compared to the 1.22 million tons registered during the same period in 2025.
The situation has already prompted similar decisions at other companies. Mosaic has reduced or suspended operations related to phosphate production in Brazil and announced measures at its facilities in Minas Gerais due to difficulties in obtaining sulfur in quantities and prices that are economically viable.
Potential layoffs still depend on negotiations
Despite the potential impact on hundreds of families in Minas Gerais, the situation cannot yet be treated as a confirmed suspension. The presented possibility involves collective negotiation and may change if the company can normalize supply before September.
There are also reports of approximately 120 layoffs occurring gradually since June, but these layoffs have been associated with operational adjustments during the period of increased production at the facility and should not be automatically added to the 600 potential layoffs due to the sulfur crisis.
This case exposes a sensitive point in Brazil’s fertilizer strategy: even a factory costing nearly US$ 1 billion, built on a significant national mineral reserve, can become vulnerable when a single essential raw material fails to arrive in the country. If international supply does not recover, how far can the Brazilian industry sustain the promised expansion?
