HEG Share Price Jumps 27% in Two Days to Hit 52-Week High

The share price of HEG, a leading manufacturer and exporter of graphite electrodes in India, has been creating a buzz on the stock exchanges. As of 11:05 AM on December 4, 2024, the stock has surged 13%, marking an impressive 27% jump over the last two trading sessions. This remarkable rally has propelled the stock to a fresh 52-week high, underscoring the impact of recent global developments on HEG’s business prospects.

Key Developments Driving the Surge

The key catalyst for the recent surge in HEG’s share price is the geopolitical tensions surrounding trade restrictions imposed by China.

• China’s Export Ban on Critical Materials

China recently announced a ban on the export of materials critical to semiconductor and chip-making processes, including gallium, germanium, antimony, and superhard materials, to the US. This move, attributed to concerns over military applications, also introduced stricter regulations on dual-use products related to graphite.

• Impact on Global Graphite Demand
  

Graphite, a vital material for various industrial applications, including electric arc furnace steelmaking, is now subject to tighter scrutiny. The shift in supply dynamics has placed Indian companies like HEG in the spotlight, as they stand to benefit from increased demand for alternative sources of graphite products.

HEG’s Market Leadership

HEG has long been a dominant player in the global graphite electrode industry.

HEG operates the world’s largest single-site graphite electrode plant under one roof, with an annual production capacity of 80,000 tons. With its recently completed expansion to 1,00,000 tons, HEG is now the third-largest graphite electrode producer in the Western world.

For over 20 years, HEG has consistently exported 65-70% of its production to more than 35 countries, highlighting its robust international presence and demand.

Share Performance of HEG in 2024

HEG’s stock has demonstrated exceptional performance throughout the year. The share price has surged by an impressive 48.51% in 2024. The stock gained 27% in just two trading sessions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.