RBC says ruling potentially negative for phosphate makers, especially Mosaic

RBC Capital analyst Andrew Wong notes that the U.S. Court of International Trade ruled the U.S. International Trade Commission’s findings leading to countervailing duties on Russian and Moroccan phosphate imports was based on insufficient evidence and said the ITC must conduct new analysis of the situation and make a new determination. The firm views this court ruling as potentially negative for domestic phosphate producers, especially Mosaic (MOS), as it brings uncertainty to future U.S. pricing relative to global benchmarks, noting that U.S. phosphate prices have generally traded at a premium since the introduction of duties on Russian and Moroccan imports in 2021, the analyst tells investors. Other fertilizer makers include CF Industries (CF) and Nutrien (NTR).