About 28.8 lakh shares of HEG, comprising a 6% equity in the company, changed hands on the counter at an average selling price of Rs 600 per share, ET Now reported.
Meanwhile, China’s decision to tighten its export restrictions on graphite has created optimism that Indian suppliers, like HEG and Graphite India, could see an increase in demand. HEG shares extended their winning streak to the third session on the overall optimism.
China, the world’s largest producer of graphite, plays a key role in supplying the material, which is used in military applications and the production of Electric Vehicle (EV) batteries. The recent decision by China to tighten its export controls could limit the availability of graphite to the US, which may in turn boost demand for Indian suppliers.
This move follows the US government’s heightened scrutiny of Chinese semiconductor technology and other critical materials, including gallium, germanium, and antimony, all of which have military applications.
Additionally, demand for graphite is expected to rise as it is a key component in the steel industry, which could benefit from increased government spending in the coming months. With graphite being a crucial component in steel production, the surge in demand is also expected to be fueled by upcoming government spending aimed at the steel industry. As HEG continues to expand its operations, including a recent increase in production capacity to 100,000 tons, it is well-positioned to capitalise on the growing global demand for graphite. Over 70% of HEG’s revenue comes from exports, with the US contributing around 17% of its sales.The introduction of a Rs 9,000 crore production-linked incentive (PLI) scheme by the Indian government for electric battery components further strengthens HEG’s outlook, especially as it explores entering the graphite anode market for lithium-ion batteries.
China’s announcement of stricter export reviews, especially for shipments to the US, is expected to significantly impact global graphite supply chains. However, HEG and Graphite India may benefit as they continue to expand and enhance their global presence, competing with international giants such as GrafTech International and Japan’s Resonac.
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