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Celanese: New Solution Center and Acetyl Price Hike

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Business updates

On December 10, 2017, Celanese (CE) announced that it opened a new customer solution center in Tokyo, Japan. The center will help customers select engineered materials and polymer technologies. Celanese will display the polymer product lines range and give customers computer-aided engineering analysis.

Mark Oberle, Celanese’s senior vice president of the Asia and EMEA regions, said, “The new center in Tokyo will expand the company’s technology footprint and enable Celanese to bring its materials and chemicals solutions to Japanese customers in the early stages of their product development cycle.”

In another development, Celanese announced a price increase for several products of acetyl intermediates across different regions. The price hike will be effective on January 1, 2018. The impact of these price hikes could be seen in 1Q18. It will be positive if the volumes don’t fall. Below is the list of price hikes:

  • Vinyl acetate monomer rose by 300 renminbi per metric ton in China, $100 per metric ton in Asia outside China, the Middle East, and Africa,  100 euros per metric ton in Europe, and $0.05 per pound in the US.
  • In North America and South America, the prices of trimethyl amine and dimethyl amine rose by $50 per metric ton, dimethyl amind (60% solution) by $30 per metric ton, and paraformaldehyde by $100 per metric ton. The formaldehyde solution rose by $0.018 per pound.

Stock price update

Celanese’s stock price remained flat for the week ending December 15, 2017. Celanese traded 3.90% above the 100-day moving average price of $102.55, which indicates an upward trend in the stock. Its 14-day relative strength index stands at 49, which indicates that the stock isn’t overbought or oversold.

Investors looking to invest in Celanese indirectly can invest in the First Trust Materials AlphaDEX Fund (FXZ), which has invested 1.90% of its portfolio in Celanese. The fund’s other holdings include Westlake Chemical (WLK), DowDuPont (DWDP), and Eastman Chemical (EMN) with weights of 3.80%, 2.60%, and 2.50%, respectively, as of December 15, 2017.

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