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Graftech, the industry leader in the graphite electrode space (~15% global market share) has announced that it has informed customers of a minimum increase of 30% in graphite electrode prices

ICICIdirect Research 09 Sep 2026 DISCLAIMER

News: Graftech, the industry leader in the graphite electrode space (~15% global market share) has announced that it has informed customers of a minimum increase of 30% in graphite electrode prices, effective immediately for all open commercial negotiations. The price increase is in response to lower graphite electrode prices over the past few years (below sustainable levels leading to muted EBITDA profile for the company) coupled with rise in raw material and logistics costs amidst ongoing geo-political conflict.

View: The present 30% increase amounts to ~US$ 1,200/tonne i.e., upper end of the guidance it had laid out in the month of March 2026 i.e., US$ 600-1,200/tonne. Last quarter realizations stood at ~US$ 4,000/tonne. Usually committed volumes form lion share of sales volume with limited spot sales, hence the said price increase will not immediately flow thru the P&L in totality and shall be progressive in nature. However, it is a strong indication of healthy price hike for 2027 contracts and bodes well for Indian players like HEG and Graphite India. HEG has recently undertaken the demerger exercise and hence its graphite electrode business is due for listing in about 45-60 days. Presently listed HEG Ltd/HEG Advance Material has no implications from the said news item. Graphite India in that case is the clear short-term sentiment play on industry consolidation and progressive price hikes undertaken by global players. One more point to also note is that both the players i.e., HEG Graphite Ltd and Graphite India are also shareholders in Graftech and with Graftech up 18% in trade yesterday, there gains stand amplified.

Impact: Positive

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