Florida Prepares for Hurricane Ian, Fertilizer and Other Chemicals Under Focus
- 28-Sep-2022 4:09 PM
- Journalist: Henry Locke
Houston, USA: Hurricane Ian, the latest of the Atlantic Hurricanes, has been expected to make landfall in Florida, and the world keenly watches the impending impact of the landfall and its consequences on commodities. Conventionally, the US gulf has been battered by Hurricanes during Q3, and this year has been no different. However, the unpredictability of the aftermath still looms large in the United States.
The severity of the forecasts made earlier in the year about the above-average hurricane season in the Atlantic has manifested in the form of back-to-back hurricanes impacting the North American region. Days after Hurricane Fiona devastated Eastern Canada, a Category 3 Hurricane Ian has risen with a wind speed of 120 miles/hr and will make landfall on the Western Coast of Florida.
Meanwhile, not only Florida, but the Gulf region as a whole, braces for the upcoming Hurricane. As per the latest updates, Chevron and BP have shut down their oil-producing platforms in the gulf region as a precautionary measure.
Florida is a key hub for several commodities, and the fertilizer market tops the charts. The City of Tampa is a critical trade center for fertilizers, and the impending Hurricane has shut the port of Tampa, likely to hamstrung the fertilizer trading activities globally.
Mosaic and Yara, two of the leading producers of Fertilizers in the world, have operations in Tampa, and the looming threat of Hurricane Ian has put both companies on prior notice. Mosaic and Yara have been proactive and notified their employees to work remotely.
Ammonia prices in the USA have been on the decline in the last few weeks. However, with power disruptions, and production curtailment in sight, Ammonia prices may shift the balance and are expected to observe an uptrend in the coming weeks.
Other than Tampa, Jacksonville and Lakeland is expected to be in the path of the Hurricane and likely to observe disruptions. Lakeland has an Epoxy resin plant run by Hexion, while Jacksonville is home to BASF, Symrise, and other major companies.
The accurate impact of Hurricane Ian on commodities can only be measured after its conclusion; however, the Hurricane’s impact on commodities is inevitable as Florida prepares for severe weather conditions.
