Diesel Exhaust Fluid News Atlantic Region Energy Expo (AREE)Atlantic City, NJ

Rising Prices - The big news in DEF right now is rising urea prices. Farmers planted corn earlier than usual this year due to the abnormally warm weather. This combined with record high crop planting activity, estimated at 96 million acres, has contributed to the rapid rise in urea prices. The chart below shows how urea prices have been on a steep climb since January. It’s important that we educate our customers about the price of urea and its effect on DEF prices. The idea of corn crops driving the price of fluid on their trucks is a very new concept for our customers.

Last month, we saw competitors raising prices between $0.15 and $0.25 cents per gallon.

Urea Supply - A major advantage for our distribution network is our supply strategy with CF/Terra, who has tonnage of urea dedicated to DEF. As urea tonnage gets tight, we are partnered with the largest urea producer in North America with four production sources to pull from. Competitors are all pulling from PCS plants in Lima and Augusta; not only are wait times getting longer at the plant gates, but now you have several companies trying to service their customers from a shrinking supply. Urea producers have large agricultural customers who demand much higher amounts of urea than the DEF market does. As supply tightens the producers are faced with decisions on who gets priority. This is happening now, just two years into the market. As the DEF market grows our supply strategy will benefit us greatly.

Truck Production - Truck sales have slowed in recent months but producers are holding to projections that the total heavy duty truck market will be around 250,000 to 275,000 trucks in 2012, (2011 production was 259,000 units). These numbers are off compared to earlier estimates that the market would top 300,000 trucks this year. If we take out Navistar’s International brand units we can estimate around 200,000 to 220,000 new SCR trucks will hit the road in 2012.

Brenntag has named Bret Happel to head the DEF business in the US and Canada. As DEF Business Director, Bret’s responsibilities include oversight of more than 30 DEF rail terminals and 120 locations throughout North America which distribute jugs, drums, totes, mini-bulk and full truck loads of DEF.

Bret has over 20 years experience with Brenntag and most recently served as Vice President of Sales at Brenntag Mid-South headquartered in Henderson, KY.

Brenntag is the world's largest Diesel Exhaust Fluid distributor supplying TerraCair® Ultrapure Diesel Exhaust Fluid. Brenntag's experience with Diesel Exhaust Fluid begins in Europe, where the company has delivered Adblue® for over 7 years. With over 100 DEF stocking locations in the United States and Canada, and extensive operating capabilities, Brenntag North America is able to provide DEF to all regions of North America in a safe, timely manner.

Brenntag has partnered with Terra Environmental Technologies Inc. (TET), a wholly owned subsidiary of CF Industries Inc., as their supply partner of Diesel Exhaust Fluid. TET's high quality TerraCair® Ultrapure DEF is produced in the US and Canada. TET is the only supplier with a dedicated Diesel Exhaust Fluid supply channel.

Brenntag North America's extensive operations network allows us to offer customers the right product, in the right packaging, at the right time, at the right place to safely meet their needs.

For more information about BrenntagDEF, visit our website!

Brenntag North America has partnered with Terra Environmental Technologies (TET) to provide our customers with high quality TerraCair® Ultrapure Diesel Exhaust Fluid.

TerraCair® DEF is a nitrogen-based urea solution that helps clean the air by reducing nitrogen oxide (NOx) emission from the exhaust stream of diesel engines. TerraCair® is the automotive brand name for Terra Environmental Technologies' DEF.

TET has received certification from the American Petroleum Institute (API). The certification recognized that TerraCair® Ultrapure DEF meets the stringent quality standards that engine manufacturer service warranties specify must be used.

TerraCair® Ultrapure is the preferred Diesel Exhaust Fluid of several leading original truck producers (also referred to as OEMs) such as Ford, Daimler, Hino, Volvo and Mack Trucks North America. Several Travel Centers such as Sapp Bros. Travel Centers, North American Truck Stop Network, America's Best Truck Stops, and Professional Transportation Partners also endorse TET's TerraCair.