Electrode price rise brightens outlook for HEG, Graphite India
Over the past month, the stocks of HEG and Graphite India have gained 25% and 12% respectively.
Synopsis
After a lacklustre trend in 2020, electrode prices have gained 10-15% in the past two weeks. Electrodes are used in the EAF method of steel production which is less polluting than the conventional blast furnace method.
ET Intelligence Group: HEG and Graphite India, top electrode manufacturers in the world, are expected to benefit from a sharp rise in the electrode prices due to tight supply in China. The electrodes are used for steel production. In the previous steel rally, the two stocks gained around 20-30 times within two years. With cleaner production gaining importance, especially in China, steel companies are rapidly changing their capacities from blast
