India’s graphite electrodes sector is witnessing robust growth, driven by rising steel production and infrastructure development. The market is projected to grow at a CAGR of 12.61 percent in 2025, peaking at 13.12 percent in 2027, and moderating to 11.73 percent by 2029. Major players like Graphite India and HEG collectively hold a 22 percent global market share.
On Monday, shares of a leading Indian graphite electrode maker surged after Japan’s Resonac announced it would halt production in China and Malaysia. The decision aims to boost margins impacted by a flood of low-cost Chinese products, prompting expectations of reduced competition and improved pricing for Indian manufacturers.
Resonac, a major graphite electrode producer with a global annual capacity of 2,10,000 tonnes across six plants, is shutting down its China and Malaysia units. Post-liquidation, it will operate four facilities located in Japan, the US, Austria, and Spain, aiming to streamline operations and improve overall profitability, the report stated.
The report highlights that Resonac’s shutdown in China and Malaysia could impact up to one-third of its capacity. This supply reduction is expected to tighten global availability of graphite electrodes, potentially driving up prices and improving profitability for other manufacturers, including those based in India.
Here are the stocks that jumped up to 18% after a Japanese company halted production of graphite electrodes in China and Malaysia
HEG Ltd
HEG Limited manufactures and exports graphite electrodes. The company’s segments are graphite electrodes (including other carbon products) and power. Graphite electrodes are used in steelmaking using the Electric Arc Furnace (EAF) technique, which requires around 1.5-2.0 kg of graphite electrode.
With a market capitalization of Rs 10,552.98 crore, the shares were trading at Rs 546.85 per share, increased around 12 percent as compared to the previous closing price.
HEG Limited operated the world’s largest single-site graphite electrode plant with an 80,000-ton annual capacity. In early 2024, it expanded to 100,000 tons, making it the third-largest graphite electrode producer in the Western world, significantly strengthening its global position and production capability.
Graphite India
Graphite India Limited is engaged in the business of manufacturing graphite electrodes, graphite equipment, steel, glass reinforced plastic (GRP) pipes, and tanks. The Company is also engaged in the generation of hydropower. The Company operates through two segments: Graphite and Carbon, and Others.
With a market capitalization of Rs 10,897.07 crore, the shares were trading at Rs 557.75 per share, increased around 18 percent as compared to the previous closing price.
Graphite India is the largest graphite electrode producer in India and among the top globally, with a total annual capacity of 98,000 tonnes. Its production is distributed across three facilities—two in India (Durgapur and Nashik) and one in Nurnberg, Germany.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
