The post HEG Shares Surge as GrafTech Raises Electrode Prices appeared on BitcoinEthereumNews.com. The share price of the Indian company that operates the biggestThe post HEG Shares Surge as GrafTech Raises Electrode Prices appeared on BitcoinEthereumNews.com. The share price of the Indian company that operates the biggest

HEG Shares Surge as GrafTech Raises Electrode Prices

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The share price of the Indian company that operates the biggest single-site integrated graphic electrodes plant in the world is surging.

On Friday, HEG Limited soared to ₹574.00, up by more than 14% from its previous closing price of ₹503.10. Based on its current value of ₹567.55, the graphite electrode manufacturer and exporter saw gains of nearly 18% over the past five trading days.

US-based Competitor Announces Price Hike

HEG’s shares jumped after US-based industry leader GrafTech International announced that graphite electrode prices will increase by a minimum of $600 to $1,200 per metric ton depending on the region.

GrafTech, which holds around 25% to 30% in ex-China markets share said that the prices for graphite electrodes have significantly declined over the past three years and remain below sustainable levels.

Geopolitical Developments Drive Up Operational Costs

The company said that its decision to raise prices is due to increases in input costs, citing that geopolitical developments drive up the prices of oil-based raw materials, energy and logistics.

The Ohio-headquartered firm said that the price increase will help safeguard its regional graphite electrode production and ensure continuity of supply for customers. The company has manufacturing facilities in France, Spain, Mexico and Pennsylvania. 

“After a prolonged period of pricing pressure, coupled with rising input costs, a reset in graphite electrode pricing is necessary,” said GrafTech CEO and president Timothy Flanagan in a statement.

“While we have taken significant actions to improve our cost structure, this price increase supports reliable supply for our customers, the long-term sustainability of our operations and the creation of shareholder value.”

Greenlight to Increase HEG’s Prices

HEG and GrafTech are competitors but the Indian graphite electrode maker is seeing positive market sentiment following GrafTech’s announcement. The development could serve as a greenlight to also increase the company’s prices amid rising operational costs.

Source: https://coinpaper.com/15764/heg-shares-surge-as-graf-tech-raises-electrode-prices

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