Record urea prices in June put a financial squeeze on suppliers of AdBlue – the diesel emissions fluid (DEF) used in Europe as a key component of selective catalytic reduction (SCR) in many heavy-duty trucks, U.K. analysis firm Integer Research is reporting.
With growing doubts over the health of the commercial vehicles market due, in part, to soaring diesel prices, AdBlue suppliers are heading for tougher conditions in the third quarter, the firm says.
AdBlue suppliers already had cut margins to the limit in order to achieve market share, Integer says. Suppliers have raised prices modestly, but they – as well as truck and engine makers that use SCR – are concerned that a volatile AdBlue price would hurt them competitively relative to trucks that use only exhaust gas recirculation (EGR) technology.
SCR and DEF will be required in low-emissions solutions to be offered in 2010 by several major diesel engine suppliers, including Detroit Diesel, Volvo and Paccar.