Chemical and advanced materials maker Celanese Corporation ( CE ) has announced an increase in the selling prices of chemicals such as ethyl acetate, methyl isobutyl carbinol (MIBC) and methyl isobutyl ketone (MIBK) in North, Central and South America. Price of ethyl acetate will increase by 3 cent per pound in the U.S., Canada and Mexico, whereas it will increase by $70 per metric ton in Central and South America.
Price of methyl isobutyl carbinol (MIBC) will increase by 5 cents per pound in the U.S., Canada and Mexico and by $100 per metric ton in Central and South America. Methyl isobutyl ketone (MIBK) prices have been increased in the U.S., Canada and Mexico by 5 cents per pound and by $100 per metric ton in Central and South America. Price hike for the above products is said to be effective from Sep 1, 2014.
Recently, Celanese also increased the prices of polyvinyl Aaetate (PVAc) homopolymer and vinyl ccetate ethylene (VAE) emulsions by 200 yuan per metric ton in China and $30 per metric ton in the rest of Asia. This price rise is effective from today, or as contracts permit.
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 will focus more on company-specific initiatives (including innovation and productivity programs), which will help it to offset expected headwinds associated with the expiry of a methanol contract in mid-2015.
Celanese currently carries a Zacks Rank #2 (Buy).
Investors interested in the chemicals space can also consider stocks like Minerals Technologies Inc. ( MTX ), Green Plains Inc. ( GPRE ) and Johnson Matthey plc ( JMPLY ). While Minerals Technologies and Green Plains retain a Zacks Rank #1 (Strong Buy), Johnson Matthey holds a Zacks Rank #2 (Buy).
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