North American producer Mosaic expects to lose about 300,000t of phosphate production this quarter after sustaining damage to its Louisiana facilities during Hurricane Ida.
The company's Faustina and Uncle Sam facilities sustained wind damage from Ida, and repairs are expected to limit production during the next eight to nine weeks, the company said today. Estimated production impacts also account for losses at Mosaic's New Wales facility in Florida from an equipment failure this month.
Mosaic expects fourth quarter operating rates will recover sequentially, but quarterly production could still trend below historical averages. Damage sustained along the lower Mississippi river, affecting much of the industry's shipping network, could also pose logistical challenges this fall, the producer said.
Lost power and anticipated affects at Faustina — a 1.6mn t/yr phosphate plant — have added fuel to phosphate supply concerns this week as the market continues preparations for the upcoming fall application season. Operations at the Uncle Sam facility include 800,000 t/yr phosphoric acid capacity and three sulfur burners — two 540,000 t/year double absorption plants and a 540,000 t/year single absorption plant — according to company and regulatory filings.
Mosaic will provide an update in the company's third quarter earnings release.
