Celanese Corporation [NYSE: CE] has made a new decision to increase the prices of Acetate Tow product grades sold internationally by $ 0.40/kg or € 0.34/kg. The decision of price surge will be valid for orders dispatched on or after October 18, 2021, or as contracts otherwise allow. The firm revealed that the decision to make an increase in prices is the need of time as it will help the firm to overcome the impact of these structural changes.
The firm disclosed the period of the past 18 months is challenging for every company in this industry. Various challenges have structurally influenced the producers. The new constraints and policies for the industry have amplified the difficulty of manufacturing and portfolio requirements. These new changes have forced the firm to make the decision like increase the prices of Acetate Tow.
Celanese Corporation [NYSE: CE] shares were trading down 0.03% during the trading session of Monday. Celanese Corporation [NYSE: CE] share price went from a low point around $103.30 to briefly over $171.00 in the past 52 weeks, though shares have since pulled back to $153.28. CE market cap has remained high, reaching $16.73 billion at the time of writing.
The firm disclosed that the decision to increase prices is because the new policies caused high utilization rates, logistics complexities including equipment and operator availability have added cost and lead-time uncertainties, and major production costs have surged suddenly in response to sector demand, conversions, and availability. Furthermore, the commitment of CE to the acetate tow business guarantees that it will continue to invest in the necessary assets, modernization, and effective services that its valued customers depend on.