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Eastman Chemical Raises Esters Prices

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Eastman Chemical raises esters prices

On April 26, 2017, Eastman Chemical (EMN) announced an increase in the price of urethane-grade ethyl acetate in North America and Latin America. The increase of $0.11 per kilogram will be effective May 1, 2017, or as contracts allow.

The company increased prices in order to invest in facilities so that it can maintain its supply levels. The price hike could impact EMN’s revenue positively in 2Q17 provided volumes don’t fall.

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EMN’s stock price movement for week ended April 28

For the week ended April 28, 2017, EMN closed at $79.75, a 0.6% gain for the week. EMN stock traded 1.7% above the 100-day moving average of $78.43. On a year-to-date basis, EMN has risen 6%. Its 14-day RSI (relative strength index) of 50 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that a stock is overbought, and a score of 30 suggests that a stock is oversold. EMN’s 52-week low is $62.70, and its 52-week high is $82.19.

EMN underperformed the ProShares Ultra Basic Materials (UYM), which gained 2.7% for the week ended April 28, 2017. UYM invests 1.4% of its portfolio in Eastman Chemical. The top holdings of the fund include Dow Chemical (DOW), DuPont (DD), and Monsanto (MON), which have weights of 8.0%, 7.8%, and 5.8%, respectively, as of April 28, 2017.

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