GrafTech -9% after Mexico suspends graphite electrode plant

Seeking Alpha - 19 Sept 2022

GrafTech International (NYSE:EAF) tumbles to a record low in Monday's trading, -9.2%, after disclosing late Friday in an 8-K filing that inspectors in Mexico issued a temporary suspension notice to the company's graphite electrode manufacturing facility in Monterrey.

GrafTech (EAF) also said the Director of Integral Air Management of the Undersecretary of Climate Change and Air Quality of the Ministry of the Environment determined the company's Mexico operating license is no longer in effect.

The company said it is not able to assess how long operations at the facility will be temporarily suspended.

Analysts at BMO Capital, which rates the stock at Market Perform, said the news comes at "a challenging time" for GrafTech (EAF), "given its other two Europe-based UHP GE operations face significant energy cost headwinds while the spot UHP GE market remains soft," according to Bloomberg.

 

Link: https://seekingalpha.com/news/3883815-graftech-9-after-mexico-suspends-graphite-electrode-plant