Graphite India shares skyrocket 16% to fresh 52-week high; here's why

Graphite India shares: Today's rise pushed Graphite India shares to a fresh 52-week high of ₹820.85. However, they trade below its all-time high of ₹1,126.40, scaled on August 14, 2018.

Shares of Graphite India rallied a whopping 16 per cent in early trade on Wednesday, September 9, amid hopes of improved global electrode pricing following the announcement of a 30 per cent price hike by global graphite electrode maker GrafTech International.

 

Today's rise pushed Graphite India shares to a fresh 52-week high of ₹850. Against its last closing price of ₹734.45, the stock gained 15.73 per cent. As of 9.45 AM, it was trading 15.45 per cent higher at ₹847.95. A combined 14.8 million shares of the company had changed hands at the time of writing this report.  The stock trades below its all-time high of ₹1,126.40, scaled on August 14, 2018. At present, Graphite India is the only listed pure-play entity in this space. HEG is also a listed graphite manufacturer, but following the demerger of its Graphite Electrodes business, the new entity is expected to be listed on the exchanges next month.  GrafTech International, a day earlier, announced a minimum increase of 30 per cent in graphite electrode prices, effective immediately for all open commercial negotiations. 

Increased electrode prices would mean better margins and realisation for the company. According to the company's Q1 investor presentation, Graphite India has a manufacturing capacity of 80,000 tonnes per annum, making it the largest Indian producer of graphite electrodes. Virat Jagad, senior technical research analyst at Bonanza, said that Graphite India demonstrates a strong bullish breakout above horizontal resistance at ₹800 on massive volume expansion. "Look for a retest entry near ₹800–₹810, keeping a stop loss below ₹770 to limit risk. Initial target sits at ₹920–₹950, with potential expansion toward ₹1,000. Price trades well above all key moving averages, supported by an RSI pushing past 70, confirming powerful momentum," he added.     

Why is GrafTech International raising prices?

A press release by the company stated that the price increase reflects the continued need to restore graphite electrode pricing to sustainable levels that support ongoing investment in production capabilities and reliable long-term supply for customers. The current hike builds on the pricing action announced by GrafTech in March 2026, wherein graphite electrode prices were raised by a minimum of $600 to $1,200 per metric ton. 

 

 

The company further said that graphite electrode prices have declined considerably over the last three years while certain raw material, energy, and logistics costs have increased. 

 

"GrafTech has taken significant actions to reduce its cost structure and improve operational efficiency, including workforce reductions, capacity idling and, most recently, the announced planned closure of its graphite electrode manufacturing facility in Monterrey, Mexico. However, these actions alone are not sufficient to restore sustainable economics," GrafTech added.

 

Timothy Flanagan, CEO and president of GrafTech, said, “Our graphite electrode pricing remains at levels that we do not believe are sustainable or consistent with the investment required to provide customers with reliable, high-quality supply over the long term.  

 

“This price increase, together with our recently announced capacity reduction and our continued support for ongoing trade proceedings, reflects a consistent strategy to address the structural challenges facing our business. We remain committed to serving our customers with the quality, technical expertise and supply reliability they expect from GrafTech, while establishing the sustainable economics necessary to support that commitment over the long term.” Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.