More Price Increases
As most in the industry are now painfully aware, the pandemic, historic ice storms in the Texas Gulf Coast region, and other issues rocked the lubricant supply chain. As a result, supply of certain types of base oil (i.e., Group III and bright stock) are very tight, and HDEO, PCMO and driveline additives have, and continue to be, exceedingly challenging to source.
Due to these and other factors, supply of finished lubricants is understandably also very tight. In fact, it’s so tight that supply of finished lubricants to most distributors are limited by some form of allocation, and at least one of the majors recently advised its distributors that some of its mainline products will simply not be available during the last two weeks of this month.
With such an unprecedented strain on supply and the ongoing uncertainty as to when additives supply will fully reboot and return to normal, we are now solidly in a sixth round of finished lubricant price increases in just over a six-month period. And considering that base oil producers announced yet another increase, the seventh since December 2020, taking effect this week and next, it’s unlikely the runup in finished lubricant prices is over.
Related article: Supply is King
The following increases are recent additions to those previously report by JobbersWorld
Recent Finished Lubricants
- Highline Warren: Today announced an increase of up to 12% on all lubricant products. The effective date of the increase is July 19, 2021.
- Calumet Refining: Advised its Penreco customers that it will increase the price of all grades of white oils and compressor lubricants by 40cpg, and the price of its petrolatum, mineral jelly, ointment base, and gels and cable gels will increase by $0.04/lb. The increase is effective June 30, 2021.
- Advanced Lubrication Specialties: Announced it will implement a price increase of up to 12% on all finished lubricants and greases. The effective date of the increase is July 12, 2021
- Nu-tier Brands/Gulf Lubricants: Announced it will implement a general price increase of 10 to 15% on all finished lubricants and greases. The effective date of the increase is July 12, 2021
- Pinnacle Resources: Implementing a 7 to 12% price increase on all finished lubricant products with orders placed after June 25, 2021
Recent Base Oil Increases
- Motiva: Effective June 17, 2021 Group II 100 will increase by 40cpg, 200 and 600 up by 45cpg, and Group III will move up 55cpg.
- Phillips 66/Excel Paralubes: Effective June 18, Group II (70, 110, 225 and 600) up 30cpg, and Group III up 45cpg
- Chevron: Effective June 15, 2021, Group II 100R will up by 40cpg, and 220R and 600R will move up by 30cpg.
- ExxonMobil: Effective June 18, Group I 100 and 150 will increase by 15cpg and 330, 600 and bright stock will move up by 30cpg, Group II EHC 65 will increase by 35cpg, and EHC45 Group II+ base oil will increase by 30cpg
- Paulsboro: Effective June 23, 2021, light viscosity grade will increase by 15cpg, mid- to high viscosity grades and bright stock will increase by 30cpg
- Calumet: Effective June 22, 2021, all paraffinic grades up by 30cpg