Recently, Indian graphite electrode manufacturers cornered investors’ attention with fundamentals pointing towards a turnaround in the sector. Key manufacturers in India – HEG and Graphite India Graphite electrode manufacturers are the key beneficiary of the improvement in its end market - global steel demand. Industry consolidation leading to lower supply and higher barriers to entry is also positive news. However, a sharp surge in raw material prices and China exports are the factors to watch out for which can cap this upside. Further, our calculations suggest that stock prices of both HEG and Graphite India are trading ahead of the expected pricing dynamics in medium-term. Industry-wide capacity consolidation – lower supply In the last few years, the global graphite electrode industry had witnessed curtailment of capacity (by 210 k tons) on account of weak profitability. Major companies like SGL Carbon and Graftech downsized their capacity by 100 kT and 60 kT, respectively. This has br…
Graphite electrodes are the main heating element used in an electric arc furnace, a steelmaking process where scrap from old cars or appliances is melted to produce new steel.
Electric arc furnaces are cheaper to build than traditional blast furnaces, which make steel from iron ore and are fuelled by coking coal. But the cost of steelmaking is higher since they use steel scrap and powered by electricity.
The electrodes are part of the furnace lid and are assembled into columns. Electricity then passes through the electrodes, forming an arc of intense heat that melts the scrap steel. Electrodes vary widely in size but can be up to 0.75 metres (2 and a half feet) in diameter and as much as 2.8 meters (9 feet) long. The largest weigh more than two metric tons.
It takes up to 3 kg (6.6 lb) of graphite electrodes to produce one tonne of steel.
The tip of the electrode will reach 3,000 degrees Celsius, half the temperature of the sun’s surface. Electrodes are made of graphite because only …
NIFTY (10167) - Normally, update the NIFTY, whenever at a crucial juncture, It may be micro or macro. so far, here itself, updated more than 200 times in the last 11 years Out of them, the best post ever was posted on 27th January 2008 Till now, that was the best among them. It was posted with the title "VISION OR MISSION" (click the above link to see that post) and the expected level was attained on Oct.2008
*** From Oct 2008 bottom edge of 2252 Oct 2017 now at 10191 That is History now, where are we?
The present Uptrend started from Aug. 2013 and still, going on... At some stage, it will be going to top out and downtrend will start Now, the Trillion dollar question is "When will it?"
I hope that this time also I can identify the top out edge at an appropriate time and will proclaim, but this time, it will not be in the public domain but in private. Let us wait.
**** By the by, below image is the content of the latest micro pattern view of NIFTY dated 27th Sep.