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Celanese: More Price Hikes for Acetyl Intermediates

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Celanese’s product price hikes

On March 14, 2018, Celanese (CE) announced that it will increase the prices of a few acetyl intermediates products. The price increase will be effective on April 1, 2018, or as the contract allows. The price increase will likely impact Europe, the Middle East, Africa, the US, Canada, South America, Turkey, and Mexico. Below are the details of the price increase:

  • The acetic acid price will increase by 150 euros per metric ton in Europe. Turkey, the Middle East and Africa, South America, and Mexico will see a hike of $150 per metric ton. In the US and Canada, the price will increase by $0.03 per pound.
  • Vinyl acetate monomer will increase by 100 euros in Europe. Turkey, the Middle East and Africa, South America, and Mexico will see a hike of $150 per metric tons. In the US and Canada, the price will increase by $0.05 per pound.

The previous week, Celanese hiked acetyl intermediate prices in China and Asia. The price hikes will be made across all of the regions. The price hikes could have a positive impact on Celanese’s revenues if the volumes don’t decline. The impact will be visible in 2Q18.

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Stock price update

Celanese declined 1.7% and closed at $106.73 for the week ending March 16, 2018. Celanese closed above the 100-day moving average price of $106.27. On a year-to-date basis, the stock has declined 0.3%. LyondellBasell (LYB) declined 2.9%, while Eastman Chemical (EMN) and Westlake Chemical (WLK) gained 16.3% and 8.8%, respectively. Celanese’s 14-day relative strength index of 56 shows that the stock isn’t overbought or oversold.

Investors could hold Celanese indirectly by investing in the First Trust Materials AlphaDEX Fund (FXZ). FXZ has invested 2.0% of its portfolio in Celanese as of March 9, 2018. FXZ declined 1.9% for the week.

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