Shares of graphite electrode manufacturers HEG Ltd and Graphite India delivered impressive gains on Friday, March 27, with HEG shares trading nearly 14% higher at ₹574 on the NSE and hitting a high of ₹574. Graphite India shares were trading around 10.5% higher at ₹656.20 on the NSE, reaching a high of ₹659.85. According to reports from The Economic Times, these gains came despite bears regaining strength and leading to overall weakness on Dalal Street. As of 10:10 AM, HEG shares were trading 11.75% higher at ₹562.20, with the stock having gained about 16% over the past one year. Graphite India shares, which were up around 1% this year prior to the rally, rallied nearly 11% to trade at ₹659.85.
The rally was triggered by GrafTech International Ltd's announcement to increase graphite electrode prices by $600 to $1,200 per metric tonne, depending on region, effective immediately on uncommitted volume. As reported by The Economic Times, GrafTech International is a leading manufacturer of high-quality graphite electrode products essential to electric arc furnace steel production. The company cited that over the past three years, market prices for graphite electrodes have declined significantly in each of its key regions and remain below sustainable levels necessary to support continued investment and reliable long-term supply. GrafTech holds an estimated 25-30% market share in ex-China markets and has signalled firm pricing trends, which is seen as positive for domestic players such as Graphite India and HEG.
According to GrafTech International's press release, current geopolitical developments are driving increases in key input costs, including oil-based raw materials, energy, and logistics. Timothy Flanagan, chief executive officer and president, stated that after a prolonged period of pricing pressure, coupled with rising input costs, a reset in graphite electrode pricing is necessary. The price increase represents a necessary step to restore pricing on GrafTech's products to levels that will safeguard regional graphite electrode production and continuity of supply for customers. Going ahead, investors will track whether Indian graphite electrode makers follow through with price increases, especially as input and freight costs have also risen. As per The Economic Times, GrafTech has executed several strategic initiatives to structurally improve its cost position and operational efficiency, but the pricing needs to improve.
The price hike announcement has created positive sentiment for Indian graphite stocks, as it signals a global recovery in electrode prices. As reported by The Economic Times, this development directly improves realisations and margins for Indian players in the graphite electrode manufacturing sector. ICICI Securities noted that this is a positive development for domestic graphite electrode players, which also face profitability pressure due to the subdued global pricing environment. The announcement reflects the industry's efforts to restore pricing levels that support sustainable operations and long-term customer supply reliability in the global graphite electrode market. Separately, HEG informed exchanges that its trading window will remain closed from April 1, 2026, until 48 hours after the announcement of its financial results for the quarter and year ended March 31, 2026.
