Why GrafTech Stock Is Down Today
Mexican authorities have suspended operations at a key GrafTech International (NYSE: EAF) facility, raising questions about the company's ability to keep up with demand for graphite electrodes. Investors are selling the shares on the news, with GrafTech down about 10% in midday trading.
GrafTech is one of the world's largest suppliers of graphite electrodes used in electric-arc steelmaking, a fast-growing part of the steel industry because of its relatively low costs and more environmentally friendly setup. But the company has apparently run afoul of Mexican regulators, raising questions about its ability to meet demand for the graphite up ahead.
On Friday evening, GrafTech said inspectors issued a temporary suspension notice to its Monterrey, Mexico, facility, instructing it to wind down operations within seven days. The authorities also said that the facility's operating license was no longer in effect.
Source Fool.com
