Shivam Shekhawat 30 Followers

Summary

GrafTech is positioned for significant upside as electrode prices recover and supply tightens amid industry capacity closures and rising Electric Arc Furnace demand.

EAF has implemented a 30% price increase effective Q1 2027, with spot graphite electrode prices near $6,000/ton, supporting improved margins and easing financial stress.

Closure of the Monterrey facility will lower annual cash costs by $25M–$30M, concentrate production, and enhance operating leverage as demand rises.

Refinancing risk is reduced; EAF projects a $532M cash balance by 2029 and a 42% EBITDA margin, supporting confidence in debt refinancing and business sustainability.

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Investment Thesis

I last discussed GrafTech International (EAF) in August and a lot has improved for the company since then. EAF has announced a further increase of 30% in electrode prices.…