Celanese Corporation (CE) declared that it will raise the price of acetate tow for core grade items by 5% to 6%. Prices may rise by a differentiated amount for unique low-volume tow items and special quality acetate tow items. The price hike will be effective from Jan 1, 2015, or as specified in the agreements.
Recently, Celanese increased the selling prices of chemicals such as ethyl acetate, methyl isobutyl carbinol (MIBC) and methyl isobutyl ketone (MIBK) in North, Central and South America. Price of ethyl acetate increased 3 cents per pound in the U.S., Canada and Mexico whereas the same increased $70 per metric ton in Central and South America, effective Sep 1, 2014.
Celanese had also increased the prices of polyvinyl Aaetate (PVAc) homopolymer and vinyl ccetate ethylene (VAE) emulsions by 200 yuan per metric ton in China and $30 per metric ton in the rest of Asia.
Celanese has taken up cost-cutting measures and the necessary steps to run its plants better and counter weak demand. It is aggressively expanding its capacity in the emerging Asian markets. The company’s initiatives to expand in China are expected to support earnings growth.
Celanese is one of the world's largest producers of acetyl products as well as a leading global producer of high-performance engineered polymers.
Celanese is a Zacks Rank #3 (Hold) stock.
Investors interested in the chemicals space can also consider stocks like LyondellBasell Industries N.V. (LYB), Valhi, Inc. (VHI) and Green Plains Inc. (GPRE). While LyondellBasell and Green Plains sport a Zacks Rank #1 (Strong Buy), Valhi carries a Zacks Rank #2 (Buy).
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