Posted on 18 Feb 2019
HEG is seeking to procure as much needle coke as possible, with supply remaining tight, while suppliers of the input material are offering prices on a half-yearly basis instead of the typical annual basis. The Indian graphite electrode producer adds that UHP electrode demand remains strong, with prices expected to stay stable at an elevated level.
HEG’s graphite electrodes segment reported a 124% on-year surge in revenue in its third fiscal quarter through December 2018 to INR 1,858 crores ($260.3 million), with exports comprising 80% of sales versus 65% a year earlier. Ebitda margin was 70.7% versus 64.4% a year earlier. Capacity utilisation was 82%. Consolidated profit after tax surged 154% to INR 867 crores.
Electrodes imports into India did, however, increase in the quarter after the Indian government removed anti-dumping duties on Chinese electrodes last September. Nevertheless, China's finished steel exports decreased -8.1% on-year to 69.34 million tonnes in 2018 due to a strong domestic market driven by steel capacity elimination and output cuts for environmental reasons. Global EAF-based steel production excluding China rose 13.4% from 2016 to 2018, to 415mt, compared to only a 1.1% increase between 2010 and 2015.
HEG competitor Graphite India said earlier this month that India’s electrodes AD duty removal coupled with downward pressure on steel prices has resulted in a correction in electrode prices (see Kallanish passim).
