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Huntsman Increases Price of Titanium Dioxide across Regions

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Price of titanium dioxide to rise on July 1

On May 8, 2017, Huntsman’s (HUN) spinoff division Venator announced a price increase for its titanium dioxide pigments. The increase will be effective on July 1, 2017, or as the contract allows and will have a global effect.

In Europe, the price will increase by 250 euros per ton. In Asia Pacific, Africa, the Middle East, and Latin America, the price will rise $250 per ton. In North America, the price will rise $0.08 per pound.

The impact of this price rise will likely be reflected in 3Q17 earnings. Assuming there’s no fall in sales volumes, the rise should boost Huntsman’s revenue growth.

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Huntsman stock price for the week

For the week ended May 12, 2017, HUN closed at $25.76 and rose 3.1% for the week. HUN stock was trading 15.8% above the 100-day moving average of $22.25, indicating an upward trend in the stock. On a year-to-date basis, HUN has risen 35.0%.

With a 14-day RSI (relative strength index) of 62, the stock is neither overbought nor oversold. An RSI of 70 or above indicates that the stock is overbought, and a score of 30 or below suggests that the stock is oversold. HUN’s 52-week low is $14.16, and its 52-week high is $26.39.

HUN outperformed the First Trust Materials AlphaDEX ETF (FXZ), which fell 1.1% for the week ended May 12, 2017. FXZ invests 1.4% of its portfolio in Huntsman. The top holdings of the fund include Tahoe Resources (TAHO), Owens-Illinois (OI), and FMC (FMC) with weights of 3.8%, 3.6%, and 3.5%, respectively, as of May 12, 2017.

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