LONDON — Following the record highs of summer 2008, the global urea price has now hit the floor, according to British market analysis firm Integer Research.
Urea is the ammonia-reducing agent currently used in AdBlue, which is used in Europe to meet emission reduction regulations. In North America (it’ll be called Diesel Exhaust Fluid here) it will be required for 2010 SCR engines.
The benchmark price of urea has collapsed to US$225/tonne, "a price not seen since the roll out of SCR technology in 2005," says Integer. Urea isn’t alone; prices have been tumbling throughout the world’s commodity markets including, most importantly for AdBlue and DEF producers, diesel.
The firm’s upcoming newsletter focuses on the implications of these price collapses for the AdBlue market as it moves from a high to low-cost production model.
The past year has been important for AdBlue infrastructure. Major mineral oil companies have completed or increased their investment in a Europe-wide AdBlue pump infrastructure and a comprehensive review will be included. This maturing market bodes well for the roll-out of SCR equipped trucks in the U.S. in the run-up to 2010.
To order Integer’s AdBlue Monitor newsletter, e-mail firstname.lastname@example.org.
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