Chemical and advanced materials maker
) said that it will raise the prices of vinyl acetate-based
emulsions across Europe, the Middle East and Africa. The prices
of PVAc homopolymer, vinyl acetate ethylene (VAE) and vinyl
copolymer emulsions will rise by up to €25 per metric ton (MT)
effective Feb 1, 2014, or as per contracts.
The price hike will affect all applications including, but not
restricted to, adhesives, paints and coatings, building and
construction, nonwovens, glass fiber, carpet, paper and textiles.
Customers have been advised to contact the company's sales
representative for additional details.
Earlier this month, Celanese said that it will raise prices
for vinyl acetate-based emulsions in the Americas and Asia.
Moreover, the company announced price increase of all high vinyl
acetate grades of Ateva ethylene vinyl acetate (EVA).
Celanese expects earnings growth on the back of
company-specific initiatives, to be consistent with its long-term
growth plan. These initiatives, including innovation of new
products and enhancement of efficiencies through productivity,
are expected to drive earnings in 2014.
Celanese is focusing on trimming costs and running its plants
more efficiently to counter weak demand. Moreover, it is
aggressively expanding capacity in the emerging Asian markets.
The company's strong presence in these markets should enable it
to deliver incremental earnings this year and next.
However, Celanese is witnessing weak demand and pricing in its
core acetyl business. Moreover, it is exposed to volatility in
raw material costs and has a highly leveraged balance sheet.
Celanese currently has a Zacks Rank #4 (Strong Sell).
Other companies in the chemical industry worth considering
L'Air Liquide SA
Johnson Matthey plc
LyondellBasell Industries NV
). While both L'Air Liquide and Johnson Matthey carry a Zacks
Rank #1 (Strong Buy), LyondellBasell holds a Zacks Rank #2
AIR LIQUIDE-ADR (AIQUY): Get Free Report
CELANESE CP-A (CE): Free Stock Analysis
JOHNSON MATTHEY (JMPLY): Get Free Report
LYONDELLBASEL-A (LYB): Free Stock Analysis
To read this article on Zacks.com click here.