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Celanese Increases Prices of Acetyl Intermediates 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 hike is applicable for orders shipped and is immediately effective or as contracts permit.

The company stated that the latest price increases are incremental to any earlier announced increases.

Prices of acetic acid will increase by $100/MT in Asia outside China (AOC) and in China it will rise by RMB 600/MT. Vinyl acetate monomer prices will rise $50/MT in AOC and RMB 400/MT in China. The prices of acetic anhydride are set to go up by $100/MT in AOC and RMB 600 in China.

The prices of ethyl acetate and butyl acetate will increase by $80/MT each in AOC. Emulsion polymers prices will increase by RMB 200/MT in China.

The company’s strategic measures that include price-hike initiatives and operational cost savings through productivity actions are likely to provide an impetus to 2019 earnings.

Celanese’s shares have lost 1.3% in the past year compared with the industry’s 0.9% decline.

In second-quarter 2019 earnings call, the company backed its adjusted earnings per share guidance of around $10.50 for 2019, considering that underlying fundamentals will improve later this year.

It will also focus on strengthening its businesses by executing productivity programs and strategically investing in high-return organic projects. Celanese is on track to commercialize more than 4,000 projects in 2019.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Alamos Gold Inc. (AGI - Free Report) and Arconic Inc. (ARNC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 87.9% in the past year.

Alamos Gold has projected earnings growth rate of 320% for the current year. The company’s shares have rallied 69% in a year’s time.

Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 18.5% in the past year.

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