New Tariffs Mean no Price Increase for ELM Biobased Greases
In what clearly is a change from much of the news JobbersWorld has been publishing in 2018 about industry wide price increases, Environmental Lubricants Manufacturing, Inc. (ELM), a leading biobased lubricants company announced that prices will not rise in some of its key grease products.
According to ELM President Dr. Lou Honary “… since the beginning of 2018 we have seen three waves of price increases by major suppliers for base oils, additives and for finished lubricants and greases. We too are impacted by increases in the price of additives, but we have also seen our base oil prices stabilize and decrease much to the disappointment of our farmers. Depressed agriculture commodity prices combined with continuous improvement in our microwave-based grease processing, we are pleased to inform our customers that not only are we not following the crowd and increasing our prices, in the case of biobased rail curve, wire rope, drill rod grease and food grade greases, we are seeing some price reductions.”
ELM production manager Saeed Soleimani stated, “increase in sales volumes of VGP certified biobased wire rope grease, barium grease-substitute biobased drill rod grease, and our lithium-based rail curve greases have helped us to further increase our purchasing power.” ELM has been private labeling biobased greases for several US and international companies. Honary said “we have long recognized that our way to the broader market is through cooperation with successful mineral oil lubricant marketers and manufacturers. We are signing on more capable private labelers who find their margins continue to degrade in mineral oil-based products while biobased products offer a new high margin opportunity.”