Japan's decision came after a probe concluded that China was harming local companies by exporting graphite electrodes at unfairly low prices, and also by flooding the market with supplies.
The company should benefit from the structural trend of decarbonisation in the steel industry
While the quarterly performance was remarkable, near-term prospects are a bit subdued due to the lower demand in Europe.
Shortage of graphite electrodes is likely in the global markets, which puts the spotlight on HEG
According to HEG management, the industry level inventory has swiftly normalised, which points to higher utilisation levels and pricing growth in electrodes in the near term
The spot price for needle coke -- the key raw material -- is around $1,800 per tonne. At this price, according to HEG, the industry should make decent margins
The management said Chinese government’s anti-pollution campaign is stricter in the current year
ICICI Direct has come out with its sector report on Graphite Electrodes dated January 03, 2018. Upcoming EAF capacity in China to create incremental demand.
Bhalchandra Shinde, Research Analyst, Anand Rathi Shares said, for one-year the earnings potential of graphite electrodes makers looks good because most of the contracts are fixed-price contracts for them.
HEG's order book for Q4 will keep them occupied to 100 percent of their capacity - 20, 000 tones for the quarter, also expecting their revenue to be higher in Q4 than in Q3.
The company aims to reduce Rs 180 crore of debt from Rs 500 crore on back of capacity expansion undertaken by the company in 2010 said Raju Rastogi, CFO, HEG.
HEG, a manufacturer and exporter of graphite electrodes in India has big plans going into 2012. Manvinder Singh Ajmani, chief financial officer at HEG tells CNBC-TV18 that with capacity addition, the company will become the largest graphite plant in the world.