Share Prices of HEG Ltd, Graphite India Ltd Zoom Upto 16% - Here’s Why

Share Price of HEG Ltd, Graphite India Ltd: Shares of HEG Ltd. and Graphite India Ltd. became top three gainers on the Nifty 500 index on Monday, May 19, having zoomed up to 16 per cent due to an production update surfacing from Japan.

Japanese firm Resonac, decided to halt its production of graphite electrodes in China and Malaysia. The move has been announced to improve margins of the company that were hit by an influx of low-priced Chinese products, according to the report.

The shares of Graphite India surged 16 per cent to Rs 573.70 apiece, while HEG Ltd. rose 11.55 per cent to Rs 550.50 during the trading session of Monday, May 19, 2025.

Resonac Halts Production, Benefits HEG Ltd, Graphite India Ltd

Resonac, a key producer of graphite electrodes, boasts of an annual capacity totalling 2,10,000 tonnes across six manufacturing facilities across the globe. After liquidating its subsidiaries in China and Malaysia, it will be left with four sites in major economical powerhouses like Japan, the US, and countries like Austria and Spain, the Nikkei Asia report stated.

The report also goes on to add that the shutdown in China and Malaysia can impact up to one-third of Resonac's capacity.

A shutdown would mean lower supply, which will eventually contribute to Graphite Electrode pricing, and subsequently, profitability.

HEG has one of the largest integrated graphite electrode plants in the world, and exports over 70 per cent of its production to more than 30 countries of the world. The Noida-headquartered HEG boasts of a market capitalisation of over Rs 10,000 crore.

Graphite India operates six manufacturing plants across the country and also owns a fully-owned subsidiary in Nuremberg, Germany, known as Graphite COVA GmbH.

At 1:48 pm on Monday, May 19 2025, shares of Graphite India were trading 15 per cent higher at Rs 561.65, meanwhile, the shares of graphite electrode exporter HEG Ltd were trading 8.97 per cent higher at Rs 543.35 apiece.