Graphite India, HEG shares gain up to 15%. Here's why

Shares of Graphite India and HEG Ltd -- two manufacturer of graphite electrodes, surged up to 15 per cent in Monday's trade amid report Japna's Resonac Holdings was looking to shut its graphite electrode plants in China and Malaysia. HEG exports about two-thirds of its production to 25-30 countries. Graphite India is also a key Indian graphite electrode player, with exports to 50 countries across the globe. 

As per Nikkei Asia, the move comes in a bid to protect margins as its products used by steelmakers are less profitable due to Chinese competition. Resonac, which has an annual capacity of 2,10,000 tonnes, will liquidate China and Malaysia arms and would be left with four manufacturing sites -- the US, Austria, Spain and Japan, Nikkei Asia reported.   

Following this, shares of Graphite India climbed 14.93 per cent to hit a high of Rs 558.75 on BSE. Despite this, the stock is down 5 per cent year-to-date. In the case of HEG, this stock was trading 8.28 per cent higher at Rs 530.95. This scrip hit a high of Rs 544.65 earlier today. The stock is flat for 2025 so far.  

Resonac Graphite is a subsidiary of Resonac Holdings Corporation, a collection of chemical companies producing petrochemicals, chemicals, inorganics, aluminum, and electronics.

Resonac’s Graphite business unit is the leading producer and supplier of graphite electrodes worldwide. These products are used as component in the electric arc furnace (EAF) steel-making process. Resonac Graphite's electrodes are used in EAF, ladle furnaces, and non-ferrous smelting applications.

In the case of Graphite India, it manufactures Graphite Electrodes and a wide range of carbon and graphite specialty products in India. The company operates six manufacturing plants across the country and also owns a fully-owned subsidiary in Nuremberg, Germany, known as Graphite COVA GmbH.

The main business of HEG is graphite which accounts for 80 per cent of the revenue. This company also deals in power division.