BASF said it will raise prices for polyalcohols used in production of synthetic lubricants, Kraton Polymers has announced price increases for polymers used in lubricants, Hercules Inc. has added a raw material surcharge to the price of a chemical used to produce synthetic polyol esters, and Texas Petrochemicals has raised prices for its polyisobutylene product line that is used in lubricant and fuel additives.
BASF announced on Friday it will raise prices immediately, or as contracts allow, for neopentylglycol by 0.15 (U.S. 22 cents) per kilogram, trimethylolpropane by 0.19/kg and hydroxypivalic acid neopentylglycolester by 0.15/kg.
The company said it is making the price adjustments to reflect increased operating, logistics and raw material costs. According to BASF, headquartered in Ludwigshafen, Germany, polyalcohols are widely used in solvent-free coatings as well as in production of synthetic lubricants, polyurethanes and alkyd resins.
Houston-based Kraton on Thursday said it will raise prices worldwide by 150 (U.S. $220) per metric ton, effective Jan. 1, 2008, on all of its polymers and compounds. It produces SBS, SEBS and SEPS polymers used in lubricants and other applications ranging from personal care to paving. The company has production facilities in the United States, Germany, France, the Netherlands, Brazil and Japan.
According to Kraton, unprecedented cost increases associated with energy, raw material, packaging and transportation have severely compressed its core margins. We need to restore margins to acceptable levels to allow Kraton to continue to offer the level of service and innovation our customers have come to expect, said Kevin Fogarty, executive vice president.
Wilmington, Del.-based Hercules earlier in November announced its paper technologies and ventures group implemented a pentaerythritol raw material surcharge of 13 cents per pound effective Dec. 1 on all list and off-list pricing. This surcharge is necessary to offset continuing unprecedented raw material increases, the company said.
On Nov. 1 Hercules completed expansion of its Louisiana, Mo., synthetic lubricants manufacturing facility, which produces synthetic polyol esters used as lubricants for refrigeration and air conditioning applications. Pentaerythritol is used to manufacture polyol esters.
On Nov. 30, Houston-based Texas Petrochemicals announced it would raise prices by 7 to 10 percent on its PIB product line, driven by a steady increase in isobutane pricing over the last several months. PIBs are used as base stocks in lubricants – sometimes as an alternative to bright stock – and as a component in metal forming fluids, gear oils, greases and two-cycle oils. They are also used in other applications such as caulks, sealants, adhesives and rubber.
Texas Petrochemcials has established this price increase to partially offset some costs that are driven by many factor sin the marketplace, said Texas Petrochemicals Vice President and General Manager for Performance Products Sandra Davis. Among them, record pricing for oil, which is a main driver to isobutane costs.
The company first entered the PIB market in May 2000 with startup of its patented process to produce a wide range of PIB products. Since then, Texas Petrochemicals has more than doubled its capacity through multiple expansion projects.