The shares of Graphite India and HEG strongly rallied on March 25 after the Japan imposed a significant 95.2 percent anti-dumping duty on China's graphite electrode exports for four months, starting from March 29.

Graphite India shares closed nearly 7 percent higher at Rs 492 apiece, while those of HEG closed nearly 12 percent higher at Rs 482 apiece.

Japan’s import duty hike on Chinese exports is expected to give a competitive edge to India's domestic HP-grade graphite electrodes, which are expected due to a cost advantage.

The decision by the Japanese cabinet came after a government probe concluded last month that China was harming Japanese companies by exporting graphite electrodes, an industrial material used in electric arc furnace steelmaking at unfairly low prices, and by flooding with its supplies. The government had launched the investigation in April 2024, after Japanese graphite makers SEC Carbon, Tokai Carbon and Nippon Carbon submitted their pleas.

The shares of domestic graphite electrode makers had received a boost in December as well, after China decided to impose tighter control on the export of graphite. China, world's leading producer of graphite, had said that any shipment to US will undergo stricter review of the intended use.

Graphite India shares have seen a strong surge in recent days, rising over 23 percent in the past one month. However, it has recorded a decline of more than 18 percent over the last six months. HEG shares have seen a 41 percent rise in share price over the last one month but are lower by over a percent in the past six months.

Earlier this month, India's Directorate General of Trade Remedies (DGTR) had recommended a 12 percent safeguard duty on steel products for 200 days, mainly on flat steel products such as hot and cold rolled products.