Noxguard Diesel Exhaust Fluid, Quality That Minds the Price.

Noxguard Diesel Exhaust Fluid, Quality That Minds the Price.

Noxguard Diesel Exhaust Fluid, Quality That Minds the Price

Many are the products that require transformation from raw materials, that allow us to have as final output a product that can be purchased on a shelf in stores. At Transliquid Technologies, with our flagship product Noxguard Diesel Exahust Fluid (DEF), we are no exception. Like in all industries, the price of the raw materials largely defines the final price that consumers pay.

Noxguard DEF is a product that combines several raw materials, for the product itself and for the packaging; as well as energy for our production line.

2020 has seen an increase in the price of one of our raw materials known as industrial urea. However, if there is something that in the long term does not have significant increases, it is commodities. There are even some that will drop in price depending on the circumstances, as in the case of oil today. This may be due to global interest in obtaining energy in a sustainable and ecological way, which implies that fossil fuels will tend to decrease.

Urea is a commodity that is acquired for multiple uses in the industry, in our specific case, the automotive industry.

  • …With the exception of a couple of spikes, industrial commodity prices have been falling relative to the S&P 500 ever since. And most people think there are good reasons for this to continue. “

There are many reasons for the US dollar to weaken, which would cause commodity prices to rise. Possibly the world that we’ve had to live in for more than six months now, with the variant that hit our economy, SARS-CoV-2 plus a rare electoral year, has been projected in the prices of inputs at an international level. Other factors may have affected as well, such as trade wars and even military movements.

Chart, line chart Description automatically generated

Cost behavior for industrial urea according to Index Mundi.

The price of urea in the past semester has increased by up to 40%.

“In January 2021 alone, the price of urea moved from an average of $246-$268 to $315-$327 a ton and the end-of-month figures continued to rise.”

So we have the following scenario.
Based on what has been noted here, we seek to impact Noxguard DEF consumers as little as possible, or not at all. We highly recommend that our clients be aware of their own strategy, that they closely monitor their inventories and order in advance, so that the increase in industrial urea, is mitigated by prevention. Apparently we are in a dilemma with some commodities for 2021 that have to do with new factors that may have an influence on this increase. These are times where prevention becomes an essential tool to preserve the correct path to growth -or in its case- to resist the reality that is shaping us.

At Transliquid Technologies LLC. we are here to resolve any questions that may arise and we are in the best disposition to see us all go around the obstacles we face . We are at your service!

 

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