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Celanese (CE) Raises Prices of Acetyl Intermediate Products

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Celanese Corporation (CE - Free Report) is raising the list and off-list selling prices of acetyl intermediates products. The price increase is applicable for orders shipped and is immediately effective or as contracts permit.

The company will increase Vinyl Acetate Monomer prices by 3 cents per pound in the United States and Canada. In South America and Mexico, the prices will increase $125 per metric ton (MT). Prices in the EMEA region will increase €100 per MT.

Moreover, prices of Ethyl Acetate and Butyl Acetate will increase by $50 per MT in Asia outside China.

Celanese’s shares have lost 10.4% in the past year compared with the industry’s 8.7% decline.

Notably, the company’s revenues in the Acetyl Chain segment slumped 23.5% year over year in the second quarter due to persistent decline in industry pricing resulting from deflationary environment for raw materials.

In second-quarter earnings call, Celanese stated that it witnessed demand recovery in the early third quarter order bookings at improved levels on a sequential-comparison basis. The company expects a modest sequential improvement in earnings in the Engineered Materials unit for the third quarter.

It also sees a modest volume recovery in the Acetyl Chain, which is expected to offset incremental energy and turnaround costs. The company also noted that surge in coronavirus cases is a concern. Celanese is focused on productivity and working capital management.   

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space include Golden Star Resources Ltd. , Eldorado Gold Corporation (EGO - Free Report) and Yamana Gold Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Golden Star Resources has an expected earnings growth rate of 12.5% for 2020. The company’s shares have surged 88.4% in the past year.

Eldorado Gold has an expected earnings growth rate of 2,225% for 2020. Its shares have returned 38.8% in the past year.

Yamana has an expected earnings growth rate of 76.9% for 2020. The company’s shares have soared 91.8% in the past year.

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