Celanese increases prices of acetyl intermediates
On August 9, Celanese (CE) announced a price hike for several acetyl intermediate products. The price hike is related to the Asia region and is expected to be effective immediately or as the contract allows. Below is the list of price increases:
- The price of acetic acid is expected to be increased by 300 yuan per metric ton in China and $55 per metric ton in Asia outside China.
- Acetic anhydride prices are expected to be increased by 400 yuan per metric ton in China and $65 per metric ton in Asia outside China.
- Butyl acetate and ethyl acetate prices are expected to increase by $65 per metric ton in Asia outside China.
- Vinyl acetate monomer prices were increased by 200 yuan per metric ton in China and $50 per metric ton in Asia outside China.
The impact of the price increase is expected to be more visible in Celanese’s (CE) third-quarter earnings. CE didn’t provide any reason for the price hikes. In its second-quarter earnings, Celanese reported revenues of $1.84 billion, an increase of 22.1% over the second quarter of 2017.
Stock price update
Celanese (CE) stock gained 0.5% and closed at $116.51 for the week ended August 10. These gains helped Celanese trade 5.2% above its 100-day moving average price of $110.74, which indicates prevailing bullishness in the stock.
Celanese stock has gained 9.1% year-to-date, while LyondellBasell (LYB) and Eastman Chemical (EMN) have gained 2.0% and 5.9%, respectively. Westlake Chemical (WLK) has declined by 8.0%. Celanese’s 14-day RSI (relative strength index) score of 57 shows that the stock is neither overbought nor oversold.
Investors can hold Celanese indirectly through the Invesco DWA Basic Materials Momentum ETF (PYZ), which had 2.9% exposure to Celanese on August 10. PYZ fell 1.0% last week.