NEW YORK U.S.
imports of Russian and Venezuelan ferrosilicon will likely fall
following the filing of an anti-dumping petition seeking duties
against the product, creating a "floor" for domestic pricing,
market participants said.
Russian and Venezuelan
ferrosilicon is allegedly being sold in the United States at
less than fair value, according to the July 19 petition filed
with the Commerce Department and the International Trade
amm.com, July 19). The petition was filed by CC
Metals & Alloys LLC and Globe Specialty Metals Inc., and
targets Russian and Venezuelan ferrosilicon imports handled by
Allegheny Alloys Trading LP, CCMA LLC, Ferroatlantica North
America Inc. and Russian Ferroalloys Inc.
trading house CCMA is separate from Calvert City, Ky.-based CC
Metals & Alloys.
Sources at Allegheny
Alloys and CCMA told AMM that they only import small
amounts of Russian ferrosilicon infrequently and wont be
greatly affected by the case, while a source at Russian
Ferroalloys, Mishawaka, Ind., confirmed that his company is "in
the process of reviewing" the case.
A source at
Ferroatlantica North America, Medina, Ohio, described the news
as "shocking," adding that his company would look to contest
the case and "head it off."
currently trading in a range of 88 to 90 cents per pound, off
from $1.03 to $1.07 per pound in early July 2011.
"I think its
just a play to have the market bottom out. ... This should
stabilize the market and push prices up because importers would
think twice about bringing material in if there are duties,"
one ferrosilicon trader said.
"The ultimate goal is
that the Russians will think twice before sending material (to
the United States). If they reduce the amount coming into the
country, that should in turn put a bottom on ferrosilicon
prices," a second trader said.
However, the second
trader expressed doubt that prices would increase
substantially, noting that it might make ferrosilicon imports
from other countries more competitive. "The consumers out there
may oppose this, but they wont be impacted by it because
prices are still at three-year lows. The Chinese stuff may
become more competitive and other sources will come into the
country, maybe from Norway or Egypt. So I dont foresee a
10- or 20-cent increase."
The petition alleges
that dumping margins on Russian material range from 21.85 to
60.77 percent and those for Venezuelan material at 20.07 to
60.11 percent, and that the U.S. ferrosilicon industry is
suffering material injury as a result of the alleged
New York-based Globe
Specialty Metals has ferrosilicon production facilities in
Bridgeport, Ala., and Beverly, Ohio, while CC Metals &
Alloys produces ferrosilicon at its plant in Calvert City.
The petition notes
that Globe Specialty Metals could also produce ferrosilicon at
its plants in Niagara Falls, N.Y., and Selma, Ala., by
converting furnaces currently being used to produce silicon
metal to ferrosilicon.