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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.
Business Upturn
19-05-2025
- Business
- Business Upturn
Why are HEG share price up over 8% today? Explained
By Aditya Bhagchandani Published on May 19, 2025, 10:04 IST Shares of HEG Ltd surged 8.31% to ₹531.35 in early trade on May 19, tracking strong gains in graphite electrode companies after reports of global supply constraints emerged. The rally follows a Nikkei Asia report stating that Japanese graphite electrode producer Resonac has ceased operations at its plants in China and Malaysia. This move is expected to reduce nearly one-third of the company's total manufacturing capacity of 2,10,000 tonnes per annum. The decision was reportedly taken to counter pressure from cheaper Chinese exports and to improve margins. With the shutdowns, Resonac will operate only four sites across Japan, the United States, Austria, and Spain. The anticipated drop in supply is expected to lift graphite electrode prices globally, directly benefiting Indian manufacturers like HEG Ltd and Graphite India Ltd. At 10:00 AM, HEG was trading at ₹531.35, up ₹40.75 from the previous close, with a market capitalization of ₹102.70 billion. The company's stock also registered a significant rise in volume, underlining positive investor sentiment. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
19-05-2025
- Business
- Business Upturn
Graphite India shares rally over 12% as Japanese rival shuts down electrode plants
By Aditya Bhagchandani Published on May 19, 2025, 10:03 IST Shares of Graphite India Ltd surged 12.65% to ₹547.95 in early trade on May 19, following positive sentiment stemming from global supply-side developments in the graphite electrode industry. According to a Nikkei Asia report, Japanese firm Resonac has halted production of graphite electrodes at its plants in China and Malaysia. The decision is aimed at boosting margins, which have been under pressure due to increased competition from cheaper Chinese products. The move will reportedly reduce up to one-third of Resonac's global electrode manufacturing capacity. Resonac, a key player in the industry, currently operates six manufacturing facilities with a total annual capacity of 2,10,000 tonnes. With the shutdown of its subsidiaries in China and Malaysia, it will now consolidate production at four locations—Japan, the US, Austria, and Spain. The potential reduction in global supply is expected to lift graphite electrode prices, offering a significant tailwind for Indian manufacturers like Graphite India and HEG Ltd. Analysts believe that tighter supply can improve realisations and boost profitability in upcoming quarters. As of 10:00 AM, the stock was trading at ₹547.95 with a market cap of ₹106.90 billion and a dividend yield of 2.01%. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
