Graphite India and HEG gain on hopes of demand revival, lower input costs

Turnaround in global steel production four successive quarters of de-growth seen as a positive for the two graphite electrode makers

Shares of Graphite India and HEG have risen 51 per cent and 17 per cent, respectively, in the past month as analysts estimate demand to revive, aided by higher steel production and reduced inventory levels.

The Chinese economy has seen sustained and robust rebound from the pandemic-driven slump. This is evident from the fact that China’s manufacturing sector logged its strongest growth in a decade in November.

Global steel production, too, snapped its streak of four consecutive quarters of contraction and reported a 2.3 per cent increase on a year-on-year basis in the September quarter. This is seen boosting the earnings of