Celanese (CE) Announces Price Rise for Acetate Tow
Celanese Corporation CE recently announced that it will increase the prices of all acetate tow product grades sold worldwide by 40 cents per kg. This price hike will be effective for orders shipped on or after Oct 18, 2021, or as contracts otherwise permit.
Celanese, which is a prominent player in the chemicals space along with Dow Inc. DOW, Eastman Chemical Company EMN and PPG Industries, Inc. PPG, stated that in the past 18 months, the entire industry has been encountering a number of headwinds that structurally affect all producers.
New regulatory and legislative restrictions have raised the complexity of production and portfolio requirements, leading to high utilization rates. The logistic complexities including equipment and operator availability, have led to higher costs as well as lead-time uncertainties. Major production costs have escalated in response to sector demand, conversions and availability.
In order to continue providing supply chain security to its acetate tow customers and overcome the impact of these structural changes, the company increased the prices. Celanese’s commitment to the acetate tow business ensures that it will continue to invest in the necessary assets, innovation and effective services that its valued customers rely upon.
Celanese, in its last earnings call, stated that it is investing in future growth through organic opportunities within its businesses, disciplined M&A like the Santoprene buyout and share buybacks. It forecasts that continued moderation in the Acetyl Chain industry pricing, as the year progresses, will be partly offset by strong demand fundamentals across its businesses and modest continued sequential earnings momentum in Engineered Materials.
The company expects third-quarter adjusted earnings in the range of $4.50-$4.75 per share. For the full year, adjusted earnings are projected in the band of $16.50-$17.00 per share.
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