The price hike is effective immediately for all open commercial negotiations. The move raised expectations of improved graphite electrode realisations and margins for Indian manufacturers after a prolonged period of weak pricing.

However, the impact on HEG needs to be viewed in the context of its ongoing demerger. The currently listed company, HEG Advanced Materials, no longer houses the graphite electrode business, which has been transferred to HEG Graphite. HEG Graphite is proposed to be renamed HEG and separately listed as a pure-play graphite electrode company. Any benefit from higher graphite electrode prices would therefore accrue to the graphite electrode business housed in the new entity.

GrafTech said the increase builds on its pricing action announced in March 2026 and is aimed at restoring graphite electrode prices to sustainable levels. The company noted that prices have declined considerably over the past three years, while certain raw material, energy and logistics costs have increased.

The company has taken measures to reduce costs and improve operational efficiency, including workforce reductions, capacity idling and the planned closure of its graphite electrode manufacturing facility in Monterrey, Mexico. However, GrafTech said these measures alone were not sufficient to restore sustainable economics.

Graphite India is one of India's leading graphite electrode manufacturers, with the company stating on its website that it has 98,000 tonnes of graphite electrode capacity. Graphite electrodes are key consumables in electric arc furnace steelmaking, where they conduct high electrical currents to generate the heat required to melt steel scrap.

GrafTech manufactures graphite electrodes used primarily in electric arc furnace steelmaking and the production of other ferrous and non-ferrous metals. The company is also substantially vertically integrated into petroleum needle coke, its key raw material for graphite electrode manufacturing.