Ferrosilicon market participants continue to speculate that
Globe Specialty Metals Inc. will convert some of its furnaces
to ferrosilicon production if its anti-dumping petition against
Russian and Venezuelan material is successful.
Globe, along with
Calvert City, Ky.-based CC Metals & Alloys LLC, recently
filed a petition with the Commerce Department and the
International Trade Commission alleging that Russian and
Venezuelan ferrosilicon is being sold in the United States at
less than fair value (
amm.com, July 22).
The petition noted
that New York-based Globe could produce ferrosilicon at its
plants in Niagara Falls, N.Y., and Selma, Ala., by converting
furnaces currently being used to produce silicon metal.
traders contacted by AMM speculated that the petition
was a prelude to Globe converting the furnaces.
"They may be looking
to convert some of their furnaces to ferrosilicon, but they
need prices to come up first," one trader said. "Theyre
trying to keep other importers out and gain market share, but
they need to get that benchmark up."
However, a source
familiar with the company said the petition "simply states the
fact that those furnaces are capable of being converted to the
production of ferrosilicon. Nothing more than that."
Meanwhile, a second
trader doubted that the mere filing of the trade complaint will
deter traders from importing Russian and Venezuelan
ferrosilicon. "Theyve got long-term contracts, so what
are they going to do? Theyve got to bring it in.
Theres no force majeure they can declare," he
currently trading in a range of 88 to 90 cents per pound,
according to AMMs most recent assessment.