W. R. Grace Increases Price of FCC Catalysts

Inflation Impact W. R. Grace Increases Price of FCC Catalysts

2022-10-06 Source: Press release W. R. Grace

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In the background of rising inflation, W. R. Grace has announced an increase in global prices for its Fluid Catalytic Cracking (FCC) catalysts. The company states that the move was necessary as inflation was impacting the energy as well as raw material markets.

For FCC catalysts, unprecedented levels of inflation are impacting raw materials such as caustic soda, aluminum-derived chemicals and acids. (Source: Pixabay) — For FCC catalysts, unprecedented levels of inflation are impacting raw materials such as caustic soda, aluminum-derived chemicals and acids.
(Source: Pixabay)

Columbia/USA – The chemical industry is experiencing some of the highest inflation in modern history, impacting both energy and raw material markets. In response to rising costs, W. R. Grace & Co. is announcing global price increases for its FCC catalysts and is modifying existing surcharge mechanisms in the 4th quarter of 2022.

“The demand for differentiated FCC catalyst technology remains extremely high as demand and margins for refined products have strengthened in 2022,” said Tom Petti, Grace’s President, Refining Technologies. “Our pricing actions today are necessary to offset historic inflationary pressure and continue our commitment of offering industry leading catalyst solutions and expert-level technical service that combined creates significant incremental profit for our customers.”

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For FCC catalysts, unprecedented levels of inflation are impacting raw materials such as caustic soda, aluminum-derived chemicals and acids. Freight and logistics costs have also been elevated, affecting the cost to deliver finished premium catalysts, as well as the cost to procure the necessary raw materials.

In addition, energy price inflation has been exacerbated by the ongoing conflict in Eastern Europe, reaching some of the highest levels in history and severely impacting the cost to manufacture FCC catalyst.

Even with Grace’s continued efforts on productivity and driving operational efficiencies, the pace and magnitude of inflation cannot be offset by normal price adjustments.

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