CBAM Boosts Dalal Street: HEG, Graphite India Shares Surge

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With Europe’s CBAM regime kicking in from January 1, 2026, graphite electrode makers HEG and Graphite India hit fresh highs as markets price in cleaner steel demand

By S JHA

Mumbai, December 31, 2025 — Electrode manufacturers ruled the Dalal street on Wednesday. HEG Limited and Graphite blasted through the roofs as Europe unveils CBAM regime from January 1, 2026. The “dirty” steel will face additional taxes from Thursday in Europe.

HEG and Graphite are India’s leading electrode manufacturers. Both the stocks have been trending for the past few days. They have scaled their 52-week highs.

“Graphite India surged over 9%, posting its best daily close since May 2024, showing a strong momentum-led breakout backed by aggressive participation,” said Angel One in a note shared with clients.

Incidentally, steel scrips were the top gainers in the markets on Wednesday. JSW Steel, Tata Steel, SAIL, and others locked big gains.

Incidentally, HEG and Graphite India have given 25-30% returns in past few days. “CBAM (Carbon Border Adjustment Mechanism) to kick in from January 1, 2026. CBAM penalizes high-carbon steel production and promotes the Electric Arc Furnace (EAF) route,” wrote Aditya Mittal, an investor, on X.

He stated that “HEG and Graphite India manufacture graphite electrodes, a critical component for Electric Arc Furnace (EAF) steelmaking.” “CBAM is a carbon tax on dirty steel entering Europe. From January 1, 2026. Europe will charge extra tax on steel made using high-pollution methods,” he added. The move is aimed to encourage steel made using cleaner processes, he added.

“Graphite electrodes are like giant batteries/rods, which carry electricity inside EAF furnaces, and get consumed regularly. Thus, it creates repeat demand,” the investor explained.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)