Celanese increases acetate prices
On September 18, Celanese announced that it will increase acetate tow prices. The price increase will be effective on November 1 or as the contract allows. The prices will increase across all of the acetate tow grades. The increase will impact Eastern Europe and Asia. Celanese will increase the acetate tow prices by $1.00 per kilogram.
The impact of the price increase will likely be seen in the fourth quarter. Celanese said that it’s increasing the prices for sustainability and continued customer supply. Marcel van Amerongen, the vice president of Cellulose Derivatives, said, “We have undertaken significant cost-reduction actions in the last few years to drive the sustainability of our business and ensure we deliver the support, quality, and security of supply our customers have grown to rely on from Celanese.”
Stock price update
Celanese stock increased 2.7% and closed at $116.22 for the week ending September 21. The gains in Celanese’s stock price resulted in the trend reversal of its 100-day moving average price. Celanese trades 2.1% above the 100-day moving average price of $113.80.
Celanese stock has gained 8.9% year-to-date. Eastman Chemical (EMN) has gained 6.0%, while LyondellBasell (LYB) and Westlake Chemical (WLK) have declined 6.3% and 23.1%, respectively. Celanese’s 14-day relative strength index score of 56 shows that the stock isn’t overbought or oversold.
Investors could hold Celanese indirectly through the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ had 2.9% exposure to Celanese on September 21. PYZ increased 1.6% last week.