In a press release on March 13, Celanese (CE) announced that it would increase the price of its ATEVA EVA polymers. The company increased the price by $80 per metric ton. The price increase will be for the Asian region. The price increase is effective immediately or as the contract allows.
The price increase might be positive for Celanese if the volumes don’t fall. The price increase might impact Celanese’s first-quarter earnings. However, the full impact will likely be visible in the company’s second-quarter earnings. In the fourth quarter, Celanese reported revenues of $1.69 billion—an increase of 6.0% on a year-over-year basis.
Stock price update
Celanese stock closed at $101.23 and rose ~1.5% for the week ending March 15. The gains caused Celanese stock to trade 4.2% above the 100-day moving average price of $97.16. Celanese’s 100-day moving average has fallen from a high of $114.38 to the current levels, which indicates weakness in the stock. However, on a year-to-date basis, Celanese stock has risen 13.1%. Eastman Chemical (EMN), Westlake Chemical (WLK), and LyondellBasell (LYB) have risen ~8.8%, 7.2%, and 5.6%, respectively.
Celanese’s 14-day RSI (relative strength index) score of 52 indicates that the stock isn’t overbought or oversold. An RSI of 30 and below suggests that the stock is oversold. An RSI of 70 and above indicates that the stock has moved into the “overbought” position.
Investors could hold Celanese indirectly through the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ had 3.5% exposure to Celanese as of March 15. PYZ rose ~1.3% for the week.