Celanese Announces Engineered Materials Price Increases

Rhea-AI Summary

Celanese (NYSE: CE), a global specialty materials and chemical company, has announced price increases across its product range, effective March 1, 2025, or as contracts allow. Individual product grades may be subject to higher increases than specified.

The company, a Fortune 500 member with approximately 12,200 employees worldwide, reported 2024 net sales of $10.3 billion. Celanese focuses on producing specialty material solutions used across major industries and consumer applications, emphasizing sustainability through responsible materials management and expanding their sustainable products portfolio.

Positive

• Net sales of $10.3 billion in 2024
• Ability to implement price increases, indicating pricing power
• Diverse product portfolio across major industries

Negative

• Potential impact on customer relationships due to price increases
• Risk of reduced demand following price increases

Insights

Financial Analyst

The announced price increases for Celanese's engineered materials portfolio represents a calculated move to protect and potentially expand margins in their specialty materials segment. This pricing action carries particular weight given Celanese's $10.3 billion revenue base and their position as a Fortune 500 company with significant market influence.

The March 1 implementation date is strategically timed, allowing customers a reasonable notice period while positioning the company to capture improved margins heading into the typically stronger second quarter. In the specialty materials sector, pricing power often serves as a key indicator of market position and brand strength, particularly for engineered materials where product differentiation and performance characteristics can justify premium pricing.

The announcement's timing and structure suggest a carefully orchestrated approach to margin management. By leaving specific increase amounts unspecified and noting that individual grades may face higher adjustments, Celanese has maintained flexibility in their pricing strategy while signaling to the market their commitment to value-based pricing. This approach allows for customized negotiations with key accounts while establishing a broader framework for price adjustments across their portfolio.

The move could have several second-order effects: First, it may trigger similar actions from competitors, potentially leading to broader industry price normalization. Second, it could accelerate customer decisions on inventory management and forward-buying patterns. Third, it may drive increased focus on cost-optimization initiatives among downstream customers, potentially affecting demand dynamics in the medium term.

DALLAS--(BUSINESS WIRE)-- Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, will increase prices for a range of products. These price increases will be effective on March 1, 2025, or as contracts otherwise allow. Additionally, individual grades may be subject to higher increases than specified below.

	Brand / Material Type	Price Increase
Base Resin		ASIA $ / kg	AMERICAS $ / lb	EMEA € / kg
LCP/ PCT	Vectra®, Zenite® and Thermx®	0.10	0.25	0.15
LCPA	Zytel®	0.45	0.20	0.40
PA 6, 66	Zytel®, Frianyl®, Celanyl® and Minlon® PA6 and PA66 products		0.10	0.20
	Zytel®, Frianyl® and Celanyl® halogenated FR products	0.60	0.30	0.60
	Zytel® PA66 products in Brazil		0.15
PBT/PET	Crastin® and Celanex® halogenated FR products	0.60	0.30	0.60
	Rynite® halogenated FR products	0.30	0.15	0.30
TPV	Santoprene® halogenated FR products	0.60	0.30	0.60
TPC	Hytrel® and Bexloy®	0.20	0.10	0.2
PP	Celstran® Tecnoprene®, Talcoprene® Polifor®, and Omnipro®		0.10
PP/PA/PBT etc.	Celstran® US imports / specialties	0.20		0.20

About Celanese

Celanese Corporation is a global leader in chemistry, producing specialty material solutions used across most major industries and consumer applications. Our businesses use our chemistry, technology and commercial expertise to create value for our customers, employees and shareholders. We support sustainability by responsibly managing the materials we create and growing our portfolio of sustainable products to meet customer and societal demand. We strive to make a positive impact in our communities and to foster inclusivity across our teams. Celanese Corporation is a Fortune 500 company that employs approximately 12,200 employees worldwide with 2024 net sales of $10.3 billion.

View source version on businesswire.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20250220084722/en/

Celanese Contacts:

Investor Relations

Bill Cunningham

Phone: +1 302 999 6410

william.cunningham@celanese.com

Media - U.S.

Jamaison Schuler

Phone: +1 972 443 4400

media@celanese.com

Media - Europe

Petra Czugler

Phone: +49 69 45009 1206

petra.czugler@celanese.com

Source: Celanese Corporation

FAQ

When will Celanese (CE) implement its new price increases?

Celanese will implement price increases effective March 1, 2025, or as contracts otherwise allow.

What were Celanese's (CE) net sales for 2024?

Celanese reported net sales of $10.3 billion for 2024.

How many employees does Celanese (CE) currently have worldwide?

Celanese employs approximately 12,200 employees worldwide.

What is the scope of Celanese's (CE) price increase announcement?

The price increase will affect a range of products in their Engineered Materials division, with individual grades potentially subject to higher increases.