Citi stays cautious on GrafTech amid rally on China plans

Citi analyst Alexander Hacking says GrafTech shares are rallying after Reuters reported that China plans to curb exports of some graphite products. It seems as though this will not impact graphite electrodes as it only applies to high purity products used in the electric vehicle supply chain, the analyst tells investors in a research note. The firm says temporary controls on electrodes used in steel-making may be eased slightly. As such, any benefit to GrafTech would only accrue once the company has a product suitable for the EV supply chain, contends Citi. It notes GrafTech is currently exploring various options to utilize its expertise in graphitization, but that nothing is confirmed yet. The analyst would be cautious on the shares until any such plans are announced. Citi keeps a Neutral rating on the name.