According to the media reports, Resonac will liquidate its subsidiaries in the two Asian countries, effectively scaling back a third of its total production capacity. The decision comes as the company grapples with declining profitability in its graphite electrode segment.
The news sent shares of Indian peers soaring, with Graphite India rallying 16.22% and HEG jumping 11.32% on the back of optimism that global supply constraints could improve pricing power for Indian manufacturers.
Resonac will now operate from four sites — Japan, the U.S., Austria, and Spain — down from six, with the shutdown significantly reducing its annual production capacity of 210,000 tonnes.
Industry watchers see this as a tailwind for Indian graphite players, who may benefit from higher global demand, improved realizations, and reduced competition in key export markets.