ELM Announces Price Increase for Biobased Grease and Lubricants
Normally in pace with mineral base oil prices, specialty soybean oil prices have more than tripled in less than six months.
Environmental Lubricants Manufacturing, Inc, (“ELM”) is a leading manufacturer of grease and lubricants specifically made from vegetable oils. The company is known for its use of microwaves for processing biobased greases.
Post COVID there has been a sudden increase in the use of vegetable oils in the food industry. But, combined with import and transportation delays and perhaps some speculations prices of soybean oils which is a main ingredient for ELM products has nearly tripled in less than six months. Adding the increases seen for additives, have resulted in the overall increase in cost of products. In response to these increases, ELM has announced a 16% price increase for its biobased grease and lubricant products effective June 1, 2021.
“Most of our distributors and private label clients are aware of the across-the-board increases seen in the base oil and performance enhancing additives. So, this increase is not a surprise for our clients,” says Lou Honary, ELM president. But, the higher price of the products is bound to impact some customers.
Honary believes that prices will stabilize in time especially once the stats for planted acreages are finalized and when congestion in shipping and importations are reduced. He also notes that “ELM’s formulations are based on the fatty acid profiles of vegetable oils which allows the company to use different base oils for different products. Today castor oil is less expensive than soybean oil is which unprecedented. ELM is relying on diversification of its base vegetable oils to contain the prices increases caused by shortages in the edible oil products.”