Celanese (CE) Set to Increase Acetyl Intermediates Prices
Celanese Corporation CE will increase the list and off-list selling prices of acetyl intermediates products. The price hike will be effective from Jan 1, 2018 or as contracts permit.
The company will hike the prices of Vinyl Acetate Monomer by $100/MT in Asia outside China, Middle East & Africa and Mexico & South America respectively. Prices of the same will increase by 5 cents per lb in the United States & Canada, €100/MT in Europe and ¥300/MT in China.
In North & South America, prices of Formaldehyde Solution 50% will rise by 2.5 cents per lb while prices of Formaldehyde Solution 37% will be raised by 1.8 cents per lb. Paraformaldehyde price will increase by 4.5 cents per lb. Prices of Trimethyl Amine and Dimethyl Amine (anhydrous) will rise by $50/MT in North & South America. Prices for Dimethyl Amine (60% solution) will also increase by $30/MT in the same region.
Celanese is taking appropriate pricing actions amid a volatile raw material pricing environment. Pricing improvement drove margins in its Acetyl Chain unit in third-quarter 2017.
Celanese has outperformed the industry over the last six months. The company’s shares have moved up around 20.2% over this period compared with roughly 14.4% gain recorded by the industry.
The company expects business and productivity momentum to offset fourth-quarter weakness. Celanese is optimistic that it can grow its adjusted earnings per share for 2017 toward the top end of its earlier announced guidance range of 9-11%.
Celanese’s strategic measures including operational cost savings through productivity actions and pricing initiatives are likely to lend support to its earnings in 2017. The company is also poised to gain from growth initiatives that include acquisitions. Moreover, Celanese remains focused on returning value to shareholders.
Celanese Corporation Price and Consensus
Celanese Corporation Price and Consensus | Celanese Corporation Quote
Zacks Rank & Stocks to Consider
Celanese currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kronos Worldwide Inc. KRO, Koppers Holding Inc. KOP and Westlake Chemical Corporation WLK, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos Worldwide has expected long-term earnings growth of 5%. Its shares have gained 115.2% year to date.
Koppers has expected long-term earnings growth of 18%. Its shares have rallied 20.6% year to date.
Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 81.3% year to date.
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