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Urea Price Spike

As evidenced in a number of published US Gulf Urea price indices, the price of Urea has increased by nearly 40% over the past 6 months. In January alone, Urea pricing moved from an average of $246-$268 to $315-$327 a ton with month end numbers continuing to creep up. Although not a direct correlation, when the price of urea increases so goes the price of diesel exhaust fluid (DEF). Other factors, such as increasing freight and packaging costs could also impact DEF pricing. 

DEF is an important segment in the business of many lubricant distributors. For those unfamiliar with urea and its importance in the lubricants business, diesel exhaust fluid (DEF) comprises 32.5% high purity urea and de-ionized water. A continuous supply of DEF is required to operate diesel engines with Selective Catalytic Reduction (SCR) emission systems and lubricant distributors supply a significant percentage of DEF to trucking fleets and others operating diesel engines with SCR technology. 
Understanding that some prognosticators now say urea prices will continue an upward climb for at least the next month or two, it’s a good time for both buyers and sellers of DEF to take a close look at their inventory and orders, and look to get ahead of the curve by staying on top of urea prices. 
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