Lubricants News and Updates

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 )

Since DEF is 32.5% urea, price swings on the market impact the price of DEF. Urea is also used in agriculture for nitrogen-release fertilizer, so usually we see spikes in demand (and price) along with agricultural schedules. This recent spike appears to be more supply related.

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?

The first step was the big one - the switch to Ultra Low Sulfur Diesel dropped the sulfur content from up to 500 parts per million to a max of 15 parts per million, which improved pollution levels like crazy and got rid of the black exhaust. 

The other major shift came as a result of the EPA's 2010 policy on reducing the NOx levels in emissions to almost zero. This was accomplished with the implementation of SCR technology and the use of Diesel Exhaust Fluid (DEF) - DEF is injected into the exhaust stream and neutralizes NOx into Nitrogen and Water Vapor.  

Image Credit (and a great source) - http://www.factsaboutscr.com/scr/engine-control-standards.aspx 

If you want to learn more about SCR specifics and how DEF works to eliminate NOx emissions, You can find out everything (and probably more) that you ever wanted to know in this new product information video from Peak at the following link: 

http://www.peakhd.com/product-lines/bluedef/about/ 

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.

It looks like the market went up in March anywhere from $.03 to $.05/gallon. Dennis K Burke will be holding current pricing until April 1, so dont forget to get those orders in this week! I will keep you informed for April and the other upcoming months in terms of what impact the Urea market will have on your DEF pricing.

Feel free to give me a call to discuss, 617-884-7800.  If you would like to place an order (or an additional order) before the month is out, you can do so with customer service at 617-884-7800 or by emailing lubeorders@burkeoil.com

We're excited to announce special pricing for Diesel Exhaust Fluid for the rest of December. We carry the highest quality DEF and we have the logistics to get it to you. Special pricing is effective on the conveniently sized 2.5 gallon jugs, in quantities from 25 jugs delivered (or pick them up at our headquarters and receive the special pricing with no minimum) to full pallets. (For more than pallet loads, contact lubeorders@burkeoil.com for pricing)

If you run a fleet requiring DEF, or a shop who's customers require it, this is a great opportunity to stock up and save! Don't wait though, special pricing expires December 31st!

Day to day, we get quite a few calls about Diesel Exhaust Fluid (DEF). Expanding fleets are increasing demand, and customer focus is moving from single-use containers to DEF dispensing equipment.

By now, most fleet managers are familiar with DEF, a solution of high-purity urea and deionized water, and how it is used with a newer vehicle’s Selective Catalytic Reduction (SCR) equipment.

How much DEF do I need?

Your vehicle consumes DEF at a rate of about 3% by volume to diesel consumption.

Does the DEF mix with the fuel?

No, it’s sprayed into the exhaust stream where it reacts with the NOx in the SCR system, then released as nitrogen and water.

What DEF equipment do I need?

Beyond single-use containers, we offer a full line of dispensing solutions for fleets.

Does DEF have a shelf-life?

Yes, approximately two years.

Is DEF hazardous or flammable?

DEF is not hazardous, toxic or flammable.

Is DEF corrosive?

Yes, DEF is corrosive to copper and brass, as well as other materials. Only approved materials listed in the ISO 22241 standards should be used with DEF.

What happens if I run out of DEF?

Vehicles are equipped with a dashboard DEF gauge to alert the driver on the fluid level. If the level becomes low, an alert will let the driver know that the DEF level needs to be replenished. If the driver runs out completely, the vehicle power will be reduced to encourage the operator to refill the DEF tank. Once the DEF tank is refilled, normal power levels will be restored to the vehicle.

Does DEF freeze in winter?

Yes, a 32.5% solution of DEF begins to freeze at 12º F. Freezing does not harm the quality of the DEF solution. After thawing, the DEF will perform as required.

Why use a 32.5% solution?

The 32.5% urea concentration is the lowest freezing point for water urea solutions, and SCR systems are calibrated to a 32.5% solution for optimum NOx reduction.

What if the DEF in my truck freezes?

If DEF freezes when the truck is shut down, start up and normal operation of the vehicle is not inhibited. The SCR heating system is designed to quickly return the DEF to a liquid, and operation of the vehicle is not affected.

For more info on DEF, or help in choosing the right dispensing equipment for your growing fleet, give us a call.

Spring is not looking to be a very fun month for lubricant decision makers out there.  We just had the industries FIRST price increase on diesel exhaust fluid last month; We in the process of having this year's first finished lube price increase; NOW, diesel exhaust fluid is going up again.

My suggestion, buy NOW and stock up!  But do not stock up too much.  DEF (pending on the surrounding tempatures) has a shelf life of 2 years.

Feel free to give me a call if you have any questions. (617-884-7800)

We did a previous entry running through what drives these type of price increases, specifically the April 2012 increase on DEF - if you want to read the entry to get some background info, Click here to read about the Urea Price Increase

UREA price increase is happening in April 2012, so all distributors and end users of diesel exhaust fluid (DEF) will be effected. If you are a DEF user, please call DKB today to get your latest price.

If you are curious...

Urea (fertilizer) is mainly used in the agriculture market and changes in the agriculture market, including rising natural gas prices, availability, and global agricultural factors have impacted price over time. Urea price is highly dependent on natural gas pricing, so when natural gas increases, urea follows. Because of its primary agricultural use, Urea is traded as a global commodity, and therefore liable to fluctuate with global conditions.

For a general run down on DEF, click here

For a general rundown on Urea, this website has a great explanation of what it is, why theres a global market, and how pricing works http://www.agrotainturf.com/QandA.php 

(The above chart shows urea fluctuation over the past year... Chart is from IndexMundi.com - great resource on commodity movements)

"Dial 3 to place an order..." Doesnt that drive you crazy?

Dennis K Burke has always, and will continue to seperate ourselves from our competition. One way we do this is with our customer service staff - Call 1-800-BUY-BURKE any time and you will ALWAYS get a friendly, live voice on the other end of the line. How many times do you call places and it takes numerous prompts, numerous number selections, just to speak to someone? Not here. Every call is picked up by the third ring by a trained staff member.

We are a knowlegeable and dedicated staff. Let us assist you in placing an order, answering your fuel or lubricant questions, explaining company programs, discussing market trends - any information you need is readily available.

Ensuring you have the right product for the job can be difficult in todays landscape of ever changing specs, technical requirements, technological advances, and tighter budgets. One of the most talked about items currently is DEF (Diesel Exhaust Fluid). This is a growing part of our business, and we are stiving to become a leader in this new technology that will help reduce diesel emissions - if youve got DEF questions: We've got the answers. (You can also get an explanation of DEF, why its being mandated, and what exactly all this SCR Technology is by clicking here )