Lubrizol Corp announced on Friday of last
week what it calls
"a global price increase" for all its product
lines, effective June 16.
Lubrizol said the majority of the increases
will be in the range of 12% to 20%. The
actual price increases will be dependent upon
the specific product's exposure to increasing
raw materials costs and energy-related
production costs. Lubrizol said it will
review all terms with its customers.
Lubrizol said the pricing action includes
previously announced price increases
currently being implemented in the Lubrizol
Additives segment and in certain Lubrizol
Advanced Materials product lines.
In discussing the price hikes, Lubrizol
chairman, president and CEO James Hambrick
said in a statement, "Our raw material and
energy costs have been impacted significantly
by the unprecedented surge in crude oil and
natural gas costs, both of which have
increased over 40% since early 2008. We
continue to execute strategies designed to
improve efficiencies and reduce operating
costs, but it is essential that we implement
price increases to recover these cost
increases and sustain our viability as a
valued supplier to our customers and their
industries."
JobbersWorld Editorial: For
the few
distributors that may not be familiar with
Lubrizol, Lubrizol is one of the four leading
suppliers of lubricant additives to the US
market. And when you consider the number and
magnitude of price hikes already pushed
through on
finished lubricants this year,
together with the fact that additives account
for roughly 40 to 50% of the cost to make an
engine oil, Lubrizol's
announcement is certainly cause for concern.