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Celanese Hikes Acetic Acid Prices in China Amid Weak Market

Chemical and advanced materials maker, Celanese Corporation CE announced that it will raise the list and off-list selling prices of acetic acid in China by RMB200 per metric ton (“MT”). This price rise in the wake of recent market conditions is slated to be effective immediately, or as contracts permit.

Recently, Celanese also announced its decision to raise the list and off-list selling prices of ethyl acetate by 5 cents per pound in the U.S., Canada and Mexico. The rise in price will be effective Apr 1, 2016, or as contracts permit.

We note that Celanese is still witnessing weak acetyl demand in China given the sluggish economic conditions. Going forward, Acetyl Intermediates’ margins are expected to remain under pressure in Asia due to soft demand. However, the company continues to focus on its productivity initiatives to support growth. Celanese expects adjusted earnings per share to increase 5–10% in 2016, which will keep it on track to meet its goals for 2018.

Celanese’s fourth-quarter 2015 adjusted earnings (excluding one-time items) of $1.25 per share fell 2.3% from $1.28 reported a year ago. Earnings, however, exceeded the Zacks Consensus Estimate of $1.23. On the other hand, sales in the fourth quarter declined roughly 14.4% year over year to $1,334 million. The figure also missed the Zacks Consensus Estimate of $1,391 million.

Celanese currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the diversified chemical space include Arkema S.A. ARKAY, Sinopec Shanghai Petrochemical Co. Ltd. SHI and Koninklijke DSM N.V. RDSMY. While Arkema and Sinopec sport a Zacks Rank #1 (Strong Buy), Koninklijke DSM holds a Zacks Rank #2 (Buy).

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CELANESE CP-A (CE): Free Stock Analysis Report
 
ARKEMA-ADR (ARKAY): Free Stock Analysis Report
 
SHANGHAI PETROC (SHI): Free Stock Analysis Report
 
KONINKLIJKE DSM (RDSMY): Free Stock Analysis Report
 
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