NEW YORK Ferrosilicon market participants expect the recent preliminary anti-dumping decision by the U.S. Commerce Departments International Trade Administration (ITA) on imports from Russia and Venezuela to have little immediate impact on the market.
The ITA assessed preliminary duties of 27.27 percent on Venezuelan ferrosilicon producers, including FerroAtlantica de Venezuela SA, but zero for Russian producer RFA International LP (amm.com, March 5).
Domestic representatives of the companies could not be reached for comment.
We dont think much happens at all. It doesnt make sense for the Russians to bring in big tons since the final determination has not been made, one trader said. Our take: for the next four to six months, no change. But if the final determination is unchanged, RFA International would again be a big player in next years long-term contract negotiations, he added.
Meanwhile, FerroAtlantica has plants in other countries and is not reliant on its Venezuelan operations to supply its U.S. customers, sources said. They also pointed out that Russia ships more material to the United States than Venezuela, with imports from Russia totaling 85,400 tonnes last year vs. 31,300 tonnes from Venezuela, lessening the impact of the duties.
Some also pointed out that political unrest might present greater challenges to FerroAtlanticas operations in Venezuela at the moment.
The (anti-dumping) duty is the least of their worries, a second trader said.
Ferrosilicon prices remained between 96 cents and $1 per pound this past week, with spot transactions reported in AMMs range.