GrafTech International skyrockets after hiking prices for graphite electrodes

GrafTech International surged 18.4% in Tuesday's trading after announcing a minimum increase of 30% in graphite electrode prices, effective immediately for all open commercial negotiations. The price increase comes after three years of falling graphite electrode prices and rising costs for raw materials, energy, and logistics, the company said, adding that cost-cutting efforts, including workforce reductions, capacity idling, and the recently announced planned closure of its graphite electrode manufacturing facility in Monterrey, Mexico, "are not sufficient to restore sustainable economics." Graphite electrode pricing "remains at levels that we do not believe are sustainable or consistent with the investment required to provide customers with reliable, high-quality supply over the long term," GrafTech (EAF) President and CEO Timothy Flanagan said. "This price increase, together with our recently announced capacity reduction and our continued support for ongoing trade proceedings reflects a consistent strategy to address the structural challenges facing our business." GrafTech (EAF) manufactures graphite electrode products used in the production of electric arc furnace steel and other ferrous and non-ferrous metals.