Celanese to increase acetate tow prices
In a press release on June 11, Celanese (CE) announced that it plans to increase the prices for all of the acetate tow product grades. The higher prices will likely have a global impact. Celanese will increase the prices 10% starting on July 1 or as the contract allows. Celanese didn’t explain why it’s increasing acetate tow prices.
In the first quarter, the acetate tow segment reported an adjusted EBIT of $72 million—compared to $53 million in the first quarter of 2018.
Marcel Van Amerongen, the vice president of the Acetate Tow segment, said, “To aid in securing sustainability of the Celanese acetate tow business, it is paramount that we increase prices and offset declines. Celanese is committed to our acetate tow business as we continue to invest in manufacturing assets, innovation and service in order to position the company as the strategic partner for our customers.”
Stock price update
Celanese stock closed at $104.19 and gained ~3.0% for the week ending June 14. The higher stock price caused Celanese stock to trade 2.5% above the 100-day moving average price of $101.61. Celanese’s 100-day moving average has fallen marginally from a high of $104.50 to the current levels, which indicates some weakness in the stock. On a year-to-date basis, Celanese stock has risen 16.4%, while Eastman Chemical (EMN) and Westlake Chemical (WLK) have fallen 0.3% and 1.3%, respectively. LyondellBasell (LYB) has risen 5.0% YTD.
Celanese’s 14-day relative strength index score of 61 indicates that the stock isn’t overbought or oversold.
Investors could hold Celanese indirectly through the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ had 3.9% exposure to Celanese as of June 14. PYZ rose ~1.3% for the week.