Shares of graphite electrode companies, HEG and Graphite India, surged up to 13% on May 19 after Japan's Resonac Holdings said it will quite production in China and Malaysia due to margin pressure.
Resonac is a major producer of graphite electrodes, which are used mainly in electric arc furnaces to melt scrap iron.
At 10 am, Graphite India shares on BSE were trading 13% higher at Rs 550 apiece while the shares of HEG Ltd were trading 9% higher at Rs 536 apiece.
Resonac will liquidate its subsidiaries in China and Malaysia, leaving it with four sites in Japan, the US, Austria and Spain, reported Nikkei.
The report also goes on to add that the shutdown in China and Malaysia can impact up to one-third of Resonac's capacity.
HEG has one of the largest integrated graphite electrode plants in the world, and exports over 70% of its production to more than 30 countries of the world.
HEG has 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
