Celanese hikes ethyl acetate prices
On July 6, 2017, Celanese (CE) announced that it has increased its price for ethyl acetate by 150 euros per metric ton. The increase is applicable only to Europe. The new price will be effective immediately or as the client contracts allow. The impact of the price will be more visible in 3Q17 and could have a positive impact on revenues, assuming the volume remains stable or rises.
In 1Q17, CE’s Acetyl Intermediates segment reported revenue of $619.0 million compared to $663.0 million in 1Q16. The fall can be attributed primarily to declining volumes. The increase in ethyl acetate prices in Europe could improve the segment’s revenues.
Celanese stock for week ended July 7
Celanese stock looked positive for the week ended July 7, 2017. It closed at $96.14, rising 1.3%. The rise helped widen the 100-day moving average gap. The stock was trading 7.5% above its 100-day moving average of $89.40. On a year-to-date basis, it has risen 23.2%. For the next 12 months, analysts see more upside and expect CE stock to reach $99.80. That implies a potential return of approximately 3.8% over the closing price of $96.14 on July 7, 2017. CE’s 52-week low is $60.59, and its 52-week high is $96.97. Its RSI of 67 indicates that the stock is heading toward an overbought situation. An RSI of 70 and above indicates that the stock is overbought, while an RSI of 30 and below indicates that the stock is oversold.
For an indirect exposure to Celanese, you can invest in the PowerShares DWA Basic Materials Momentum ETF (PYZ). PYZ has invested 3.2% of its portfolio in CE. The top holdings of the fund include FMC (FMC), Chemours (CC), and Albemarle (ALB) with weights of 4.1%, 4.0%, and 3.5%, respectively, as of July 7 2017.