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HEG Stays Resilient Amid Stable Graphite Electrode Prices and Global Expansion
11 Nov
Summary
- Graphite electrode prices stable for past 2 quarters
- HEG exports to 35 countries, US accounts for 10-12% of sales
- 11-12 new electric arc furnaces to boost future demand
As of November 11th, 2025, graphite electrode manufacturer HEG has remained resilient in the face of global trade challenges. According to Manish Gulati, the company's Executive Director, graphite electrode prices have been stable for the past two quarters, driven by steady demand trends and a balanced market.
Despite the 1.5% decline in global steel production this year, Gulati remains positive on HEG's outlook for the 2025-26 fiscal year. The company's revenue grew 23% in the second quarter, largely due to higher sales volumes, and its capacity utilization stayed above 90%, outperforming industry peers.
Addressing the impact of US tariffs, Gulati noted that the US accounts for only 10-12% of HEG's total sales, as the company exports to around 35 countries, including Europe, the Middle East, and Southeast Asia. This diversified global footprint has helped the company stay resilient in the face of tariff-related headwinds.
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Looking ahead, Gulati expects a demand recovery in the coming quarters as steel production picks up, particularly from electric arc furnaces (EAFs), which are key consumers of graphite electrodes. He stated that around 11-12 new EAFs are under construction, adding nearly 20 million metric tonnes of steel capacity over the next 12-18 months, which should boost future demand for graphite electrodes.
