NEW YORK 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.
Several ferrosilicon 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 said.
Ferrosilicon is currently trading in a range of 88 to 90 cents per pound, according to AMMs most recent assessment.