Latest news with #HEG
Business Standard
20-05-2025
- Business
- Business Standard
HEG reports consolidated net loss of Rs 73.67 crore in the March 2025 quarter
Sales decline 0.85% to Rs 542.25 crore Net loss of HEG reported to Rs 73.67 crore in the quarter ended March 2025 as against net profit of Rs 32.91 crore during the previous quarter ended March 2024. Sales declined 0.85% to Rs 542.25 crore in the quarter ended March 2025 as against Rs 546.90 crore during the previous quarter ended March 2024. For the full year,net profit declined 63.08% to Rs 115.06 crore in the year ended March 2025 as against Rs 311.67 crore during the previous year ended March 2024. Sales declined 9.82% to Rs 2159.69 crore in the year ended March 2025 as against Rs 2394.90 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 542.25546.90 -1 2159.692394.90 -10 OPM % -12.187.52 - 11.8115.97 - PBDT -30.0196.81 PL 360.96570.02 -37 PBT -84.6046.37 PL 160.37395.37 -59 NP -73.6732.91 PL 115.06311.67 -63
Economic Times
20-05-2025
- Business
- Economic Times
How will Resonac's plant closures impact the global graphite market?
Graphite electrodes are mainly used in steelmaking and by chemical firms. China is the world's leading producer of graphite, used for military applications and the making of electric vehicle batteries. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Graphite electrode manufacturers HEG and Graphite India surged on Monday in weak trading following news reports that Japan's Resonac Holdings will shut down its China and Malaysia plants. Resonac is a major producer of graphite electrodes , used for electric arc furnace (EAF) of Graphite India jumped 15.1% to close at ₹560. HEG shares advanced 7.7% to end at ₹528.3."Resonac's Chinese and Malaysian plants account for about one-third of the company's total graphite production," said Manish Chowdhury, head of research at Stoxbox. "While the global supply of graphite will go down post this move, demand remains intact, in tandem with demand for metals and other industrial usages, which can now be fulfilled by Indian companies."Chowdhury expects prices of graphite electrodes to firm up due to a demand-supply electrodes are mainly used in steelmaking and by chemical firms. China is the world's leading producer of graphite, used for military applications and the making of electric vehicle HEG derives almost 70% of its revenues from exports, Graphite India earns around 35% of its revenues from of Graphite India are down 1.4% this year, whereas HEG shares have remained flat in 2025 so far. The benchmark NIfty 500 is up 1.7% in this brokerage B&K Securities assigned a 'Buy' rating on Graphite India, with a price target of ₹718, citing an upward trend in graphite electrode (GE) implies 28.2% upside from Monday's close.
Time of India
20-05-2025
- Business
- Time of India
How will Resonac's plant closures impact the global graphite market?
Mumbai: Graphite electrode manufacturers HEG and Graphite India surged on Monday in weak trading following news reports that Japan's Resonac Holdings will shut down its China and Malaysia plants. Resonac is a major producer of graphite electrodes , used for electric arc furnace (EAF) steelmaking. Shares of Graphite India jumped 15.1% to close at ₹560. HEG shares advanced 7.7% to end at ₹528.3. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Rich Man Keeps Annoying Royal Guard, But He Didnt Expect This To Happen Beach Raider Undo "Resonac's Chinese and Malaysian plants account for about one-third of the company's total graphite production," said Manish Chowdhury, head of research at Stoxbox. "While the global supply of graphite will go down post this move, demand remains intact, in tandem with demand for metals and other industrial usages, which can now be fulfilled by Indian companies." Chowdhury expects prices of graphite electrodes to firm up due to a demand-supply imbalance. Graphite electrodes are mainly used in steelmaking and by chemical firms. China is the world's leading producer of graphite, used for military applications and the making of electric vehicle batteries. Live Events While HEG derives almost 70% of its revenues from exports, Graphite India earns around 35% of its revenues from exports. Shares of Graphite India are down 1.4% this year, whereas HEG shares have remained flat in 2025 so far. The benchmark NIfty 500 is up 1.7% in this period. Recently, brokerage B&K Securities assigned a 'Buy' rating on Graphite India, with a price target of ₹718, citing an upward trend in graphite electrode (GE) prices. This implies 28.2% upside from Monday's close.
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Business Standard
19-05-2025
- Business
- Business Standard
Graphite electrodes shares in demand; Graphite, HEG soar 15%; here's why
Graphite India, HEG share price today Shares of graphite electrodes companies, Graphite India and HEG, rallied up to 15 per cent on the BSE in Monday's intraday trade. The rise in Graphite India and HEG shares came amid reports of Japan's Resonac planning to close graphite electrode plants in China and Malaysia. Individually, Graphite India zoomed 15 per cent to ₹558.75, hitting an over three-month high on the BSE. The average trading volume on the counter jumped nearly 10-times today with as many as 7.27 million equity shares, cumulatively, changing hands on the NSE and BSE. Shares of HEG, meanwhile, surged 11 per cent to ₹544.65 on the back of a three-fold rise in its average trading volume. Around 5.32 million shares, together, changed hands on the NSE and BSE till the time of writing this report. What's driving the rally in Graphite India, HEG stock prices? According to reports, Japan's Resonac will quit Chinese and Southeast Asian production of graphite electrodes for steelmakers, scaling back in a bid to improve margins that have been squeezed by an influx of low-priced Chinese parts. Graphite electrodes are used in electric arc furnace (EAF) based steel mills and is a consumable item for the steel industry. The graphite electrode industry is highly consolidated with the top five major global manufacturers accounting for almost 75 per cent of the high end UHP electrode capacity. The majority of this capacity, however, is currently located in high cost regions like the US, Europe, and Japan. K K Bangur, Chairman of Graphite India, on May 14, 2025, said that the graphite electrode prices remain under pressure, while raw material costs, particularly petroleum needle coke, have not declined in tandem, leading to an impact on operating margins. Given the company's diversified export portfolio across multiple geographies, the impact of any US tariffs on the company's financial performance is limited. That said, the outlook for graphite electrodes remains positive with the medium-term move towards EAF-based production, which supports lower carbon emissions and greater operational flexibility. As of 2023, EAFs accounted for 28 per cent of global steel production, with this projected to increase to 41 per cent by 2030. In the US, the transition is more advanced with 68 per cent of steel already produced through the EAF route, highlighting the growing move towards cleaner steelmaking technologies. In line with these global sustainability initiatives, approximately 100 million tonnes of new EAF capacity is expected to be added over the next 2 to 3 years. The focus on substantial decarbonisation measures in developing economies supports the growth of the EAF process compared with the Blast Furnace / Bessimer Oxygen Furnace (BF/BOF) process. Governments around the world are also introducing stringent environmental regulations to reduce pollution. This will further support the growth of the EAF process and along with decarbonization, drive the future demand for graphite electrodes. The use of the EAF process in the steel industry is not only important for sustainable steel production but is a more cost-effective manufacturing method. About Graphite India Graphite India is the largest Indian producer of graphite electrodes and one of the largest globally by total capacity. Its manufacturing capacity of 98,000 tonnes per annum is spread over three plants at Durgapur and Nashik in India and Nurnberg in Germany. The company, through its subsidiary, has progressively acquired and now owns more than a 60 per cent stake in General Graphene Corporation, a US based company which has developed a breakthrough proprietary technology which would allow it to produce large area, high quality, low cost graphene sheets in industrial applications in scaled up commercial volumes. Graphite India has also acquired a 31 per cent stake in Godi India. This investment is part of its strategy to diversify into advanced chemistry battery technologies for the development of electric vehicle (EV) and energy storage battery cells.
Yahoo
06-03-2025
- Business
- Yahoo
GrafTech International Ltd. (EAF): A Bull Case Theory
We came across a bullish thesis on GrafTech International Ltd. (EAF) on Substack by Dominick D'Angelo. In this article, we will summarize the bulls' thesis on EAF. GrafTech International Ltd. (EAF)'s share was trading at $1.13 as of March 5th. EAF's trailing and forward P/E were 7.12 and 6.80 respectively according to Yahoo Finance. A miner gathering graphite samples from a mining area in Coosa County, Alabama. GrafTech International (EAF) is navigating a difficult market environment as excess Chinese steel and graphite electrode exports continue to suppress global prices. China, a dominant low-cost producer, has ramped up steel exports due to a real estate slowdown, flooding international markets with cheap supply. In 2024, China exported 110.72 million tonnes of steel—a nine-year high—driving down domestic steel demand in key importing regions like Southeast Asia and the Middle East. This has directly impacted graphite electrode demand, as electric arc furnace (EAF) mills worldwide struggle against the influx of cheaper Chinese steel. China remains the largest exporter of graphite electrodes, exacerbating pricing pressures on Western producers like GrafTech, HEG, and Showa Denko. While Chinese electrode export volumes were relatively stable in 2024, they exhibited high volatility, with shipments plunging mid-year before rebounding in December, reflecting shifting global steel demand and trade policy responses. GrafTech's latest earnings report underscored these challenges, with spot graphite electrode prices declining 4.9% quarter-over-quarter to $3,900 per metric ton, well below the company's breakeven price of $4,900. Management has secured 60% of 2025 volume commitments, guiding for low double-digit growth to approximately 116,000 metric tons, up from 103,100 metric tons in 2024. However, all contracts are now at spot prices, as long-term agreements have fully rolled off. The company's ability to execute a 15% price increase in the second half of 2025 remains uncertain but would indicate a pricing floor has been established. A key development is HEG's accumulation of a significant stake in GrafTech, purchasing 21.175 million shares at an average price of $1.40, amounting to 8.2% of outstanding shares. This suggests growing strategic interest, with the potential for HEG to increase its position further. Additionally, Marathon Asset Management recently acquired 14.2 million shares (5.5% of shares outstanding), contributing to heightened trading activity in February. If EAF's valuation remains depressed, HEG may bid for the entire company. Trade policy shifts could provide further upside. The European Union, South Korea, Japan, and Vietnam have all introduced anti-dumping duties on various Chinese steel and electrode products. In the U.S., recent executive orders have reinstated a 25% steel tariff and increased aluminum tariffs, effective March 12. These protectionist measures could help stabilize Western electrode pricing. Additionally, a potential resolution to the Russia-Ukraine war could revive European industrial demand, alleviating cost pressures and improving EAF's profitability. If market conditions improve, GrafTech's strategic position and recent insider buying signal a compelling turnaround opportunity. GrafTech International Ltd. (EAF) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held EAF at the end of the fourth quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of EAF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EAF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
