Graphite producers' stocks in focus on reports of short supply
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Shares of graphite makers have turned attractive with reports emerging that the commodity is in short supply globally amid the strong demand.
Graphite is a key component needed for the production of lithium batteries. The metal prevents the lithium batteries from breaking down. Besides, electrodes of graphite are used in the production of steel and aluminium.
There is a huge global demand for lithium-made batteries from the automobile sector as the world is rapidly shifting towards green mobility to fight climate change.
In line with the rising demand for graphite from automakers amid its apparent shortage, shares of companies dealing in its production have gotten a jab in the arm.
Graphite India shares rallied 56 per cent in the past one-year period, while HEG shares 84 per cent during the period.
Historically, over the past five years, Graphite India shares rose 446 per cent, while HEG rose 885 per cent.
China is the largest producer of graphite, followed by Mozambique and Brazil, statistics showed.
