JobbersWorld published an article on February 2, 2021 regarding the spike in the price of urea and the impact this has on the cost to produce diesel exhaust fluid (DEF). The article pointed out that some prognosticators at that time were saying urea prices would continue an upward climb for at least the next month or two. Because of this, JobbersWorld suggested it was 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.
Well, the prognosticators were right. Although the price of urea took a short and relatively small dip the second week in February, as shown below, the upward trajectory continues. So once again, it’s now an important time for both buyers and sellers of DEF to take a close look at their inventory and orders.
For those unfamiliar with urea and its importance in the lubricants business, diesel exhaust fluid (DEF) comprises a mixture of 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.
When the price of urea increases so goes the price of diesel exhaust fluid (DEF). Other factors, such as freight and packaging costs, which have also been on the rise, likewise impact the price of DEF.