Graphite India, HEG Shares Soar on EU Carbon Rules, Green Steel Push

• Graphite India and HEG shares surged in late 2025, driven by anticipation of Europe's Carbon Border Adjustment Mechanism (CBAM).
• CBAM, effective 2026, will tax carbon-intensive steel imports into the EU, promoting cleaner production methods.
• HEG and Graphite India, producers of graphite electrodes for Electric Arc Furnaces (EAFs), benefit as EAF steelmaking is less carbon-intensive.
• Emkay Global projects a fresh capital expenditure cycle for Indian electrode producers, anticipating increased demand from EAF steel growth.
• Global triggers like China's policy shift, CBAM, and coordinated steel industry recovery efforts are driving investor interest.

Why It Matters: Graphite electrode makers benefit from EU carbon rules and the global shift towards greener steel production.