US imposes 6.99% CVD on HEG's graphite exports
HEG's large-diameter graphite electrode exports to the US now face a preliminary 6.99% countervailing duty, stacking on an existing 18% tariff. Final resolution awaited in December 2026.
— 1 earlier story on HEG Ltd. →What's new
- US Commerce Dept imposes 6.99% preliminary CVD on HEG's large-diameter graphite electrode exports.
- HEG already pays 18% general US tariff; combined rate now about 25%.
- Final CVD and anti-dumping duty determinations due December 8, 2026.
Why this matters
The CVD adds to HEG's cost burden in a key export market. While the rate is modest, it comes atop an already hefty tariff and compounds trade uncertainty. For a company with low ROE and negative profit growth, any margin compression is unwelcome.
What we're watching
- Whether HEG can pass on the CVD to US customers.
- December 2026 final CVD and anti-dumping rulings.
- Any shift in export mix away from the US.
The full read
HEG's US customers just got a new line item on their invoices. The US Commerce Department slapped a preliminary 6.99% countervailing duty on the company's large-diameter graphite electrode exports, stacking on an existing 18% general tariff. Combined, that's nearly a quarter of the export price. HEG ships about two-thirds of its output to over 40 countries, with US steelmakers among the buyers. The world's largest single-site graphite electrode plant in Mandideep gives it a structural cost edge, but that advantage is now eroded further. The final determination, along with an anti-dumping duty call, is due December 8, 2026. Until then the 6.99% adds uncertainty to an already strained margin story. HEG's 2.6% ROE and -122.7% PAT growth leave little buffer.
Questions answered
- What is the preliminary CVD rate imposed on HEG?
- 6.99% on large-diameter graphite electrode exports to the US.
- How does this add to existing tariffs?
- HEG already faces an 18% general US tariff, so combined rate is about 25%.
- When will the final determination be made?
- December 8, 2026 for both CVD and anti-dumping duty.
- What portion of HEG's output is exported to the US?
- HEG exports two-thirds of its output globally; US steelmakers are among customers, but exact US share not disclosed.
- How significant is this for HEG's finances?
- Impact not yet ascertainable; could compress margins or require price adjustments.
- Does HEG have cost advantages to offset this?
- HEG's Mandideep plant is the world's largest single-site graphite electrode facility, providing structural cost advantages that have helped absorb trade headwinds.
Story so far
All notes on HEG →- 28 Jul 2026 · 12:12 PM IST US imposes 6.99% CVD on HEG's graphite exports
- today HEG Q1 PAT jumps 53% on better electrode mix, price hikes back-ended