Graphite India shares fell as much as 5% to a day low of Rs 762.70 on 30 September after the US flagged a preliminary dumping margin.

The trigger came from the United States. Its Department of Commerce has reached a preliminary decision in an anti-dumping case covering large-diameter graphite electrodes exported from India, and Graphite India Limited told the exchanges about it in a filing on 29 September.

Graphite electrodes are used in furnaces that melt scrap to make steel.

In plain terms, dumping means selling a product abroad at a lower price than it should fetch. The US authority has set the preliminary dumping margin at 12.22%.

That leads to a cash deposit rate of 9.88%. Once the duties take effect, that is the deposit importers would have to pay on Graphite India’s shipments to the US.

Nothing is final yet. The duties depend on a final decision from the US, and the date they would begin has not been announced.

If the ruling is confirmed, exports to the US could get costlier. The company said it received the notice on 28 September and cannot yet work out the financial impact.

The shares are up 10.02% over the past month and hit a 52-week high of Rs 874.35 on 9 September, though they have lost 5.85% in the last week.

The company also went ex-dividend on 20 July for a payout of Rs 7 per share.

At 11:41 am, shares were trading at Rs 772.75 on the NSE, down by 3.59% from the previous close of Rs 801.55.

About 14.13 lakh shares had changed hands by then. Even so, the stock is up 19.25% so far this year.

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