Volume 4 Issue 8

2020 Set Records for Base Oil Volatility

Clashing supply-demand dynamics resulted in record price volatility in the U.S. base oil market, an industry analyst observed during a virtual conference last week. A sharp drop in demand, a subsequent rebound, reduced feedstock availability and up and down crude oil costs all contributed to whipsawing base oil values.

Lanxess Acquires Chemical Company

Lanxess AG will pay $1 billion to acquire United States-based specialty chemical manufacturer Emerald Kalama Chemical, which makes products such as corrosion inhibitors for lubricants and cutting fluids. Affiliates of Emerald’s majority owner, American Securities LLC, agreed to the sale, which is expected to be completed in the second half of this year, following approvals. Lanxess said it will finance the deal with existing liquidity.

Earnings Drop at HollyFrontier, Safety-Kleen

For the fourth quarter and full year 2020, HollyFrontier Corp.’s lubricants and specialty products segment posted weaker income and lower revenue from operations, while Clean Harbors’ Safety-Kleen segment reported lower revenue.

From Other Editions of Lube Report

Belarus Alters Route for Base Oil Exports

SK Eyes Funds from Lubes Business

Profits Up for South Asian Firms

Briefly Noted

North Charleston, South Carolina-headquartered Ingevity announced a general price increase of 10%-15% effective April 1, or as contracts allow, for all merchant and derivatized tall oil rosin and tall oil fatty acid products associated with its industrial specialties and oilfield technologies portfolios. Factors cited include strong market demand and increasing raw material costs.  Lexington, Kentucky-based Valvoline appointed Mahmoud (Mack) Sharaf to serve as the company’s treasurer and chief liaison to the investment community.