HEG and Graphite India Shares Surge Up to 14% - What Is Driving the Rally
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GrafTech International's decision to raise graphite electrode prices by $600 to $1,200 per metric tonne has improved the outlook for Indian electrode manufacturers after years of weak global pricing.
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Graphite electrode manufacturers HEG and Graphite India share prices rose sharply on Friday, with both stocks gaining up to 14 per cent in a session where the broader market was trading lower. As of 2:15 PM on March 27, 2026, HEG was trading at Rs 553.35 and Graphite India at Rs 634.50. During the session, HEG touched an Intraday high of Rs 574, up 14 per cent, while Graphite India hit a high of Rs 659.85, up around 10.5 per cent.
What Triggered the Move?
The reason both stocks moved was an announcement from GrafTech International, a US-based manufacturer of graphite electrodes. GrafTech told its customers that electrode prices would go up by USD 600 to USD 1,200 per metric tonne, depending on the region, with the increase applying immediately to uncommitted volumes.
GrafTech's last reported realisation was around USD 4,000 per tonne, so this hike works out to a 15 to 30 per cent increase. The company attributed the decision to a multi-year period of below-sustainable pricing, which had pushed it to an EBITDA loss in Q4CY25, combined with rising input costs tied to geopolitical developments. In a press release, GrafTech's CEO Timothy Flanagan said that after a prolonged period of pricing pressure and rising input costs, a reset in electrode pricing was necessary to support reliable supply and the sustainability of operations.
For HEG and Graphite India, the significance of this announcement is that it signals a potential turn in global electrode pricing after years of weakness. Higher realisations from a global pricing reset would directly improve margins for Indian producers as well.
About the Companies
HEG Ltd, part of the LNJ Bhilwara Group, manufactures and exports graphite electrodes. It operates what is described as the largest single-site integrated graphite electrode plant in the world and exports over 70 per cent of its production.
Graphite India Ltd manufactures graphite and carbon products, including Ultra High Power electrodes used in electric arc furnace steelmaking.
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Disclaimer: The article is for informational purposes only and not investment advice.