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GrafTech’s price jack up to boost outlook for Indian graphite players

ICICIdirect Research 11 Sep 2026 DISCLAIMER

GrafTech International, a US-based industry leader with ~15% market share in graphite electrodes, has announced a price hike by a minimum of 30%, effective.
GrafTech’s last quarter realizations stood at ~$4000/tonne. This implies a price hike of ~$1200/tonne which is on the upper band of the guidance it laid out in March 2026.
The price increase is in response to the graphite electrode prices remaining below sustainable levels over the past years and consequently, leading to EBITDA loss for the company coupled with price increase in raw material inputs.
The foresaid price hike will not flow through the P&L in short-term as committed volumes form a major chunk of revenue and will start to reflect progressively.
We view this development as positive for HEG and Graphite India as it is a strong indication of healthy price hike for 2027 contracts, thereby reversing a multi-quarter margin squeeze for the domestic players.
Along with this, GrafTech's recently announced closure of its Mexico facility is expected to improve global export outlook for Indian graphite players as well.
Notably, both the players HEG and Graphite India have announced capacity expansion by 15,000 MTPA and 25,000 MTPA respectively, thereby ensuring medium term growth prospects ahead.
Also, both the players are shareholders in GrafTech, thereby amplifying overall gains.
Thus, we remain positive both on HEG and Graphite India, supported by the global transition toward EAF-based steelmaking, industry rationalisation, and capacity expansion led growth prospects ahead.
HEG has recently undertaken the demerger exercise and hence its graphite electrode business is due for listing in about 45-60 days, with an expected listing valuation of +₹500 per share.

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