INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of Graphite India plunged 15 per cent on the BSE early Monday, extending the losing streak to the eighth consecutive
session, touching 52-week low of Rs 470.
Shares of HEG fell for the third straight session, declining 11 per cent.
Graphite stocks have been
under pressure of late because of concerns related to imports from China and the anti-dumping duty.
Global brokerage Macquarie says removal
of anti-dumping duty in September 2018 and higher imports from China have impacted domestic non-UHP (ultra-high power) prices while UHP
prices have been impacted by weakness in steel prices
Furthermore, both Indian graphite electrode producers have stopped exporting to Iran since Q3 of FY19, pending clarification on the
exemption from US sanctions
Iran is a key export destination, accounting for 8-10 per cent of combined volumes for Graphite India and HEG
The stoppage of exports has tightened margins.
There are expectations that graphite electrode (GE) margins may face a double whammy of price
decline and cost increase over the next 2-3 quarters
The brokerage expects 20 per cent and 9 per cent QoQ drop in revenues for Graphite India and HEG, respectively, in Q3 FY19 and expects
higher price needle coke to impact the raw material cost for both the firms
Shares of Graphite India traded 8.69 per cent down at Rs 504.20 on the BSE around 10.15 am while those of HEG fell 10.02 per cent to Rs
