Celanese Increases the Price of Acetic Acid

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Celanese raises acetic acid by $50

On May 9, 2017, Celanese (CE) announced a price increase for acetic acid of $50 per metric ton. In China, the price rose 350 renminbi per metric ton. The increase will be effective immediately or as the contract allows. The impact could be seen in the 2Q17 earnings. Celanese attributed the increase in price to market conditions.

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Celanese stock performance for week ended May 12

For the week ended May 12, 2017, Celanese closed at $85.32, falling 1.3% for the week. The stock was trading 2.0% below its 100-day moving average of $87.10, indicating a downward trend. On a year-to-date basis, Celanese has risen 8.3%.

Celanese’s 14-day RSI (relative strength index) of 37 indicates that the stock is neither overbought nor oversold. An RSI of 70 or above indicates that a stock is overbought, and a score of 30 or below suggests that a stock is oversold.

Analysts have given Celanese a 12-month target price of $97.89, implying a potential return of 14.7% from its closing price of $85.32 on May 12, 2017. Celanese underperformed the PowerShares DWA Basic Materials Momentum ETF (PYZ), which fell 1.0% for the week ended May 12, 2017. PYZ invests 2.7% of its holdings in Celanese. The other top holdings of the fund include Chemours (CC), FMC (FMC), and Air Products & Chemicals (APD) with weights of 5.9%, 5.1%, and 4.0%, respectively, as of May 12, 2017.

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