The “Office Cherifien des Phosphates” (OCP) and Russia’s PhosAgro have left the US market. Russia and Morocco have reduced almost entirely the supply of the United States of phosphate. A departure that follows the complaint filed at the end of June by Mosaic Company against these two main competitors.
The American company then justified its request by “the large volumes from Morocco and Russia, unfairly subsidized, which cause significant damage” to its interests in the American market.
The announcement made Tuesday, August 4 by Joc O’Rourke, the president and chief executive at Mosaic, during a discussion with financial analysts and representatives of international banks at United States. Professionals in the United States who “import products from the OCP or the Russians have definitely taken a step back (…) We saw a drop in these imports in July,” he said.
Rise in phosphate prices in the United States
As a reminder, on July 24, two senior OCP executives told Reuters, on condition of anonymity, that “the Cherifian Phosphates Office does not rule out suspending its exports of fertilizer products to United States. The group could redirect its exports to other markets”.
The complaint of Mosaic Company against the OCP and PhosAgro induced a drop in the supply in the United States and an increase in the price of ore on the American market, to more than “60 dollars per ton”.
“In early August, the United States International Trade Commission found that imports of phosphate fertilizers from Russia and Morocco had harmed American industry. Also, the commission voted for the Commerce Department to investigate further. Its preliminary results should be published on September 21”.
In its war against the OCP and the Russian PhosAgro, Mosaic Company has hired the lobbying firm led by Brian Ballard. Considered close to President Donald Trump, he actively contributed to his victory in the 2016 presidential election. Lawyer David Ross, also linked to the Republican Party, also backed Mosaic.