Mumbai, Sept. 9 -- 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 inc...