Shares of HEG, India’s leading graphite electrode manufacturer, surged by 7% following reports of China’s decision to impose stricter review on graphite exports to the U.S. and place a ban on dual-use commodities like Germanium and Gallium.
This action in China comes in response to the United States tightening down on China’s semiconductor industry, with exports curbs levied on 140 companies, including a chip equipment manufacturer.
HEG, which recently expanded its graphite electrode plant to 100,000 tonnes, now operates the largest plant of its kind in the Western world. The company’s capacity utilization has reached an impressive 80%, the highest globally, positioning it for a competitive advantage as demand rebounds. Despite facing global demand pressures and reduced pricing power in the short term, HEG remains optimistic about the long-term prospects of the graphite industry, especially with the ongoing push for decarbonization and new greenfield furnace projects.
As of 10:20 am, HEG shares were trading 6.80% higher at Rs 534.60 on the NSE.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
