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.
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.