HEG Shares Surge 10% to Hit Six-Year High Amid China's Graphite Export Curbs
HEG Ltd., a prominent player in the graphite electrode industry, witnessed its shares climb another 10% to reach a six-year high. This rally comes in the wake of China's recent decision to implement stricter export controls on graphite, a critical component in electric vehicle batteries and steel production. The restrictions are expected to impact global supply chains, potentially benefiting non-Chinese producers like HEG. The company's strong position as a global supplier of graphite electrodes, with 65-70% of its production exported, has bolstered investor confidence. HEG's facility in Madhya Pradesh, with a production capacity of 100,000 tonnes, is well-placed to meet increasing global demand. Analysts attribute the stock's momentum to the growing reliance on Electric Arc Furnaces (EAFs) for steelmaking, which require graphite electrodes, aligning with the global push for sustainable industrial practices【8】【9】. Additionally, HEG's planned expansion into graphite ...