Graphite India shares jump 18%, hit 52-wk high after GrafTech’s 30% price hike; why currently listed HEG stock may not benefit

Shares of Graphite India skyrocketed on Wednesday, September 9, as global graphite electrode maker GrafTech International announced a minimum 30% price increase for all open commercial negotiations, effective immediately.

The stock jumped as much as 14.39% to ₹839.95 on the NSE, its 52-week high.

The move is positive for Indian graphite electrode manufacturers such as Graphite India as it signals a potential improvement in global electrode pricing after a prolonged period of weak realisations.

Higher electrode prices, if sustained, could support better realisations and margins for Graphite India.

The company is one of India's leading graphite electrode manufacturers, with an installed electrode capacity of 98,000 tonnes.

Graphite electrodes: What you need to know

Graphite electrodes are carbon-based conductive rods used mainly in electric arc furnaces (EAFs) to melt steel scrap. They carry very high electrical currents and generate an intense electric arc, producing the heat needed to melt the metal. They are also used in furnaces for producing other metals and alloys.

Since the electrodes are gradually consumed during the steelmaking process, steel producers need to replace them regularly. This makes graphite electrodes a key consumable for electric-furnace steelmakers, and their demand is closely linked to steel production and scrap-based steelmaking.

Why currently listed HEG may not benefit

The latest graphite electrode price hike may not directly benefit HEG Advanced Materials, as the company's graphite electrode business has been separated following the demerger.

Under the restructuring, the existing listed entity has been renamed HEG Advanced Materials Ltd and now houses the advanced materials, battery energy solutions, and green power businesses, along with the amalgamated Bhilwara Energy.

Meanwhile, the graphite electrode business has been transferred to HEG Graphite Ltd, which is proposed to be renamed HEG Ltd and separately listed as a pure-play graphite electrode company.

Hence, any benefit from higher graphite electrode prices is expected to accrue to the new graphite-focused entity rather than the currently listed HEG Advanced Materials.

What GrafTech International said

GrafTech International Ltd on Tuesday said it has informed customers of a minimum increase of 30% in graphite electrode prices, effective immediately for all open commercial negotiations.

The price increase builds on the pricing action announced by GrafTech in March 2026 and reflects the continued need to restore our graphite electrode pricing to sustainable levels that support ongoing investment in production capabilities and reliable long-term supply for customers.

"Over the past three years, graphite electrode prices have declined considerably while certain raw material, energy, and logistics costs have increased. GrafTech has taken significant actions to reduce its cost structure and improve operational efficiency, including workforce reductions, capacity idling and, most recently, the announced planned closure of its graphite electrode manufacturing facility in Monterrey, Mexico. However, these actions alone are not sufficient to restore sustainable economics," it added.

“Our graphite electrode pricing remains at levels that we do not believe are sustainable or consistent with the investment required to provide customers with reliable, high-quality supply over the long term,” said Timothy Flanagan, Chief Executive Officer and President. “This price increase, together with our recently announced capacity reduction and our continued support for ongoing trade proceedings, reflects a consistent strategy to address the structural challenges facing our business," the CEO added.

About GrafTech

GrafTech International Ltd. manufactures graphite electrodes used primarily in electric arc furnace steelmaking, as well as in the production of other ferrous and non-ferrous metals. The company also produces petroleum needle coke, a key raw material used in graphite electrode manufacturing, giving it an integrated presence across the production process.

GrafTech International Ltd. is headquartered in Brooklyn Heights, Ohio, in the United States.