Lubricant Additive Costs on the Rise

Cling on to Your Hats – The New Yr Begins off With Lubricant Additive Worth Increases 

Afton Chemical was the primary major additive firm to lately move prices up when it introduced on November 17th that it’ll improve the worth on nearly all of its efficiency additives by 5 to 7%. The rise went into effect December 15, 2017. Afton attributed the increase to the higher value of raw materials and increases in transportation value.

Others quickly adopted…

Lubrizol announced on December 19th it can implement a basic worth improve throughout all of its lubricant additive products efficient February 1, 2018. The increase is reportedly driven by greater raw material and operating prices (including transportation, testing and labor). The quantity of the increase are stated to be product specific.

Infineum additionally introduced on December 19th that it’ll implement a worth improve.  The rise is effective January 10, 2018 and will transfer the worth of most of Infineum’s additive merchandise up by 5 to 8%. Infineum attributes the increase to the escalating value of uncooked supplies and the higher value required to take care of constant provide.

MidContinental Chemical Company (MCC) announced on December 20th that it’ll implement a worth improve for Chevron Oronite, OLOA, and Paratone branded components. This improve is efficient on orders shipped on or after January 22, 2018. MCC attributes the rise to the current increases in the cost of feed stocks, uncooked supplies, intermediates, and better transportation costs.

PIC11142017Rev2In addition to the upper value of raw materials, another widespread thread among the many additive worth will increase is the influence the upper value of transportation is having on the business. It’s essential to think about that the price to move goods in the US elevated significantly in 2017 and little aid is predicted within the upcoming yr.

In addition to driving up the price of lubricant and gasoline additives, larger freight prices have been a key think about pushing up the worth of finished lubricants in 2017. In truth, quite a lot of lubricant blenders have reported that the price to transport product has moved up 30 to 35% because the begin of 2017.  See the November 15th concern of JobbersWorld for more concerning the elements driving up the worth of completed lubricants. CLICK FOR MORE

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