Lubricants News and Updates

There have been a lot of questions regarding Marine vessel lubricants and the VGP regulations on them, so we thought it would be a good idea to lay out some of the fundamentals on the topic. The VGP regulations on vessels requires that vessel operators replace conventional lubricants with environmentally friendly options whenever possible. 

According to farmfutures.com in their weekly review, Urea prices on the international market spiked this week, up over $120 per ton.  Futures were trending lower for the spring and summer months though, on hope that international supply issues could relieve some of the demand pressures  - hopefully that leads to a pull back in pricing over the next couple months, but time will tell. As you know, ammonia pricing also impacts DEF pricing, and the good news is those prices eased some this past week or stayed relatively stable anyways, depending on the individual market. (you can read more about the specifics on the Urea & ammonia market movements here: http://farmfutures.com/story-weekly-fertilizer-review-0-30765 )

Diesel Engines have sure come a long way from the noisy, clunky, smelly, black smoke pumping trucks we used to see. Today's diesel engines are quiet and clean, and in the case of 2010 model year and later vehicles - they even have emissions ratings better than many of their gasoline counterparts. How did that happen?

We talk a great deal around here about proactive solutions - ideas and programs that, with a little time and capital ultimately save us time, money, and maybe most importantly - save us from the headaches of unanticipated problems. A major proactive plan that's been awesome for ourselves and several of our customers is Oil Analysis. 

Antifreeze prices will be going up for all major suppliers this Spring due to the rising price of Ethylene Glycol. Ethylene Glycol is the main componant of automotive antifreeze - but it is also used in the manufacture of plastics and resins, including plastic soda bottles and it is also used in some medical applications. The increase in demand, especially for manufactured plastics as a result of economic expansion in countries like China has made global prices continue to climb.

Just a reminder on beating the DEF increase coming April 1st......As you know, this is the time of year where we start seeing increases in the DEF market.  1/3 of DEF is comprised of Urea. The reason this time of year causes an uptick in DEF prices is that Urea's primary use is as fertilizer in the agricultural sector, and competition for urea reflects on the commodities market side, and that results in an increase in its cost.