HEG, Graphite India Shares Rise Up To 14% Amid Market Fall: Here’s Why

On 27 March 2026, trading in Indian markets leaned on the weaker side. Selling pressure showed up in almost every sector. The Sensex slipped sharply during the day, while the Nifty 50 moved below the 23,000 level as global tensions kept sentiment cautious.

Amid this broader decline, HEG shares jumped as much as 14% in intraday trade to around ₹571. Graphite India shares also moved higher, gaining close to 10–11% and trading near ₹654.

HEG has fallen around 9% so far this year, while Graphite India has seen only limited gains.

What Triggered The Rally In Graphite Stocks?

The trigger came from global pricing.

US-based GrafTech International, a key player in the graphite electrode market, informed customers of a price increase ranging from $600 to $1,200 per tonne. The hike applies immediately to uncommitted volumes.

This is a meaningful jump. With earlier realisations around $4,000 per tonne, the increase translates to roughly a 15% to 30% rise.

The company pointed to two main reasons:

• Graphite electrode prices have remained below sustainable levels for some time

• Input costs such as oil-based raw materials, energy and logistics have risen

GrafTech also indicated that pricing needed a reset after a prolonged period of pressure.

For Indian companies like HEG and Graphite India, this matters. Both operate in the same global market and have been dealing with weak pricing for the past few years.

How Does This Impact Indian Players?

The price hike from a global player has lifted sentiment for domestic companies. But the real impact is not immediate.

Graphite electrode manufacturers in India have been going through challenging circumstances. Prices have remained low, input costs have increased, and demand has been inconsistent.

At the same time, costs remain a concern. Key raw materials like needle coke are linked to crude oil, and prices there have been volatile. If input costs rise again, it could limit the benefit of higher selling prices.

For now, the stock move reflects a shift in sentiment after a long period of pressure.

Also Read - RIL Drops 4% As Export Duty Hits Fuel Export Margins

What Is The Outlook For The Graphite Electrode Sector?

Graphite electrodes are used in electric arc furnace steelmaking. Since they are consumed in the process, demand depends on steel production.

According to HEG's most recent reports, demand is still not uniform among regions. Buyers have been cautious with orders, which has kept pressure on volumes.

There are some early signs of support. Capacity use has improved in parts of the market. The shift towards cleaner steelmaking using electric arc furnaces is also picking up.

HEG has been running at high utilisation levels, around 85% in the last quarter and close to 89% over the past three quarters collectively.

Over time, demand is expected to follow growth in electric arc furnace-based steel output. Still, the sector moves in cycles. Steel demand and crude-linked costs both play a role.

The recent rally in stocks shows optimism around pricing. Whether it sustains will depend on how demand and costs move from here.

Sources:

ET

Business Standard