The lubricant and lubricant additive markets are closing out 2004 on the same note that has characterized much of the year – rising prices. Arkema, Dow and OM Group all announced markups during the past few weeks.
Dow said yesterday that it will increase North American prices on UCon polyglycol base fluids and synthetic lubricants by 3 cents to 8 cents per pound, effective Jan. 1. The Midland, Mich., company said prices for materials delivered in drums will be marked up an additional 5 cents per pound.
We continue to experience unprecedented raw material costs and tight supplies, UCon Fluids Marketing Manager Julie McAlindon said. Packaging costs have also escalated over the past year, increasing costs for drumming services. We must implement these increases in order to maintain profitability to ensure we can reinvest in the business and provide continued reliable supply and service.
OMG on Monday announced hikes of 5 percent to 7 percent for all non-cobalt metal organics, effective Jan. 3. The Cleveland-based company makes metal-based specialty materials used as lubricant additives and in other applications. It attributed its increases to rising costs for key materials and freight.
Arkema, the new name for Atofina Chemicals in the United States and Canada, announced Nov. 17 that it raised the price of tertiary dodecyl mercaptan (TDM) by 20 percent, effective Oct. 5. The Philadelphia-based company cited increased costs for raw materials, energy and transportation. TDM is used as an intermediate in production of lubricants, among other applications.