Chemical and advanced materials maker Celanese Corporation (CE) has announced a hike in price of formaldehyde (37% water solution) by $175 per metric ton. The company also stated that the prices for more concentrated solutions will increase proportionally. The price increases will be effective from Jan 1, 2015, or as contracts permit.
Celanese, which is one of the world's largest producers of acetyl products and a leading global producer of high-performance engineered polymers, has taken up cost-cutting measures along with all other necessary steps to run its plants better and counter weak demand.
Moreover, Celanese is aggressively expanding its capacity in the emerging Asian markets. The company’s expansion initiatives in China are expected to support earnings growth.
Recently, Celanese and Indian Oil Corporation of Delhi, India, signed a Memorandum of Understanding (MOU) to explore the possibility of a joint investment in a fuel ethanol plant to be constructed in India, which will utilize Celanese’s TCX Technology.
Celanese is also showcasing the use of thermoplastic composites in semi-structural transportation applications as well as in on-board hydrogen storage in fuel-cell powered automobiles at the 2014 Composites and Advanced Materials Expo (CAMX), in Orlando, FL, from Oct 13-16.
Thermoplastic composites are highly preferred by the industries, such as power conductors, automotive, oil & gas and aerospace applications, which require high-strength, lightweight, recyclable materials as they support weight reduction, longer lifecycle and improved performance.
Celanese posted better-than-expected second-quarter 2014 results on Jul 17. The company saw its profits jump in the quarter on higher margins across its Advanced Engineered Materials, Industrial Specialties and Acetyl Intermediates segments.
Celanese is a Zacks Rank #3 (Hold) stock.
Better-ranked stocks worth considering in the chemical space include Minerals Technologies Inc. (MTX), Valhi Inc. (VHI) and LyondellBasell Industries N.V. (LYB). While Minerals Technologies and Valhi sport a Zacks Rank #1 (Strong Buy), LyondellBasell carries a Zacks Rank #2 (Buy).
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