US Chemical Stocks Plunge as Put Options Surge, $360 Billion in Market Cap Vanishes in a Day

Celanese Corporation (NYSE: CE) shares plunged more than 5% on June 29 in New York trading, closing at $46.83 (approximately KRW 65,000).

Its market capitalization fell to about $5.1 billion, erasing roughly $250 million (around KRW 360 billion) in a single day, with trading volume topping 1.12 million shares.

That same day in the options market, over 3,000 contracts of the July put option with a $45 strike were traded, driving put volume far above calls, and three-month implied volatility jumped into the high 50% range.

Earlier in June, after announcing the immediate shutdown of its Ulsan engineered-materials plant, RBC upheld its “Sector Perform” rating and $68 price target but highlighted weak demand and high leverage. When first-quarter EPS of $0.85 slightly missed the $0.86 consensus, Celanese moved on June 1 to raise prices across its engineered-materials portfolio and reorganize its plants to restore profitability.

Headquartered in Irving, Texas, Celanese is a specialty chemicals and materials company with a global manufacturing network producing acetyl-chain intermediates and engineered plastics for automotive, electronics and industrial customers.

Following large acquisitions and an economic slowdown that increased its leverage and earnings volatility, the company has sharply cut its dividend and prioritized free cash flow for debt reduction, accelerating a profitability-focused deleveraging and restructuring effort.