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Celanese Hikes Prices in Asia

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Celanese hikes products prices in Asia

On April 27, Celanese (CE) announced product price increases in Asia, which are set to be effective from May 1:

  • vinyl acetate monomer prices will be increased by 600 Chinese yuan per metric ton in China and $100 per metric ton outside China
  • vinyl acetate emulsion prices will be increased by 400 Chinese yuan per metric ton in China and $75 per metric ton outside China

Celanese did not provide a reason for the price hikes, whose effects will be more visible in its 2Q16 results. The price increases could boost revenue, assuming volumes do not drop. In its 1Q18 earnings release on April 16, Celanese reported revenue of $1.9 billion, marking a 25.8% rise year-over-year. The growth is expected to continue as due to the company’s price hikes.

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Stock price update

Celanese stock fell 1.7% and closed at $109.29 in the week ended April 27. Despite the stock price decline, Celanese was trading 3.3% above its 100-day moving average price of $105.84. Year-to-date, the stock has gained 2.4%, while peer LyondellBasell (LYB) has fallen 5.0% and Eastman Chemical (EMN) and Westlake Chemical (WLK) have gained 11.0% and 1.0%, respectively. Celanese’s 14-day RSI (relative strength index) score of 58 shows that the stock is neither overbought nor oversold.

Investors could hold Celanese indirectly through the First Trust Materials AlphaDEX ETF (FXZ), which had a 2.2% exposure to Celanese as of April 27. FXZ fell 3.3% last week.

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