Chemours product price increase
On June 4, Chemours (CC) announced an ~10.0% price increase for its methylamines products. The price increases are planned for dimethylformamide, dimethylacetamide, and dimethyl sulfate.
The hike in these product prices is expected to impact the North American region. The price hikes are expected to be effective on July 1 or according to the respective contracts.
The impact of the price increase is expected to be visible in its third-quarter earnings, which could improve CC’s revenues if its volumes don’t decline. To offset the increased raw material prices, Chemours has increased its product prices. As a result, the company is passing the increase in raw material prices to its customers.
Update on Chemours’ stock price
Chemours’ (CC) stock price had a positive week. CC’s stock price rose 4.0% and closed at $51.28. This increased stock price resulted in the trend reversal of its 100-day moving average price. As a result, CC stock traded 2.4% above its 100-day moving average price of $50.07.
This gain resulted in CC stock moving into the green on a YTD (year-to-date) basis with a gain of 2.5%. Among its peers, W.R. Grace (GRA) has gained 5.8% while Tronox and PPG Industries (PPG) have declined 7.8% and 11.9%, respectively.
Analysts are bullish on Chemours (CC) stock and recommended a target price of $62.85. This recommendation implies a return potential of 22.6% over its June 8 closing price of $51.28. Chemours’ 14-day RSI (relative strength index) of 54 indicates that the stock is neither overbought nor oversold.
Chemours outperformed the PowerShares S&P Spin-Off Portfolio ETF (CSD), which gained 2.7% for the week. CSD invested 3.5% of its portfolio in Chemours on June 8.