HEG, Graphite India shares surge up to 14% after Japanese company shuts electrode plants
Published on 19/05/2025 09:56 AM
HEG, Graphite India shares surge up to 14% after Japanese company shuts electrode plantsA shutdown of multiple facilities of a key producer would mean lower supply, which will eventually contribute to Graphite Electrode pricing, and subsequently, profitability.By Nigel D'Souza | Hormaz Fatakia May 19, 2025, 9:56:21 AM IST (Updated)1 Min ReadShares of HEG Ltd. and Graphite India Ltd. are among the top three gainers on the Nifty 500 index on Monday, May 19, having gained up to 14% due to news emerging out of Japan.
According to reports from Nikkei Asia, a Japanese company called Resonac, has halted production of graphite electrodes in China and Malaysia. The move has been announced to improve margins of the company that were hit by an influx of low-priced Chinese products, according to the report.
Resonac, a key producer of graphite electrodes, has an annual capacity totalling 2,10,000 tonnes across six manufacturing facilities across the globe. After liquidating its subsidiaries in China and Malaysia, it will be left with four sites in Japan, the US, Austria and Spain, the report stated.
The report also goes on to add that the shutdown in China and Malaysia can impact up to one-third of Resonac's capacity.
A shutdown would mean lower supply, which will eventually contribute to Graphite Electrode pricing, and subsequently, profitability.
Shares of Graphite India are up 13.7% currently at ₹553.2, while those of HEG are up 11% at ₹544.5. With Monday's move, shares of both HEG and Graphite India are still 13% away from their respective recent 52-week high levels.Continue ReadingFirst Published: May 19, 2025 9:55 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsgraphite electrodesGraphite IndiaHEG