HomeGAA in the MediaNewsArchiveRussian FeSi escapes US duties; Venezuela set for 22.84%


July 25, 2014
By Anthony Poole

Russian FeSi escapes US duties; Venezuela set for 22.84%

Russian ferrosilicon producer RFA International has escaped the imposition of US antidumping duties on ferrosilicon after the Department of Commerce awarded the company a zero percent dumping margin in its final determination of alleged dumping of the ferroalloy in the US.

But Commerce gave Venezuelan producer FerroAtlantica de Venezuela and all other Venezuelan producers a final dumping margin of 22.84% for ferrosilicon, down from a preliminary margin of 27.27% announced in March.

As a result of the determination for Venezuela, Commerce will instruct US Customs and Border Protection to collect cash deposits "equal to the applicable weighted average dumping margin," the International Trade Administration said on July 25 in a statement.

The US International Trade Commission is scheduled to make its final injury determination with regard to Venezuelan ferrosilicon on September 7, 2014, the ITA statement said. Because Commerce's final determination on Russian ferrosilicon was negative, the ITC will not make a final determination with respect to the Russian case, the ITA said.

It said that if the ITC makes an affirmative final determination that imports of ferrosilicon from Venezuela materially injure the domestic industry, or threaten material injury, then Commerce will issue an antidumping order. If the ITC makes a negative determination of injury, the investigation will be terminated, the ITA said.

Commerce's final determination on Russian ferrosilicon confirms the zero percent margin given in the preliminary determination, also made in March.

Because of the negative determination for Russian ferrosilicon, Commerce has not calculated a weighted-average dumping margin for all other producers or exporters of ferrosilicon in Russia. "As a result of this negative final determination, the investigation [on Russian ferrosilicon] has been terminated," the ITA said.

The investigation into alleged dumping of ferrosilicon by Russia and Venezuela began on July 19, 2013, when domestic producers Globe Specialty Metals and CC Metals and Alloys jointly filed a petition, together with two unions: the United Steelworkers of America and the United Auto Workers.

The investigation covered all forms and sizes of ferrosilicon, regardless of grade, including ferrosilicon briquettes, between July 1, 2012, and June 30, 2013.

Mixed market reaction

Some participants in the US ferrosilicon market expressed surprise at the finding for Russia.

"I really didn't think the Russians would come out of it without some margin, so I guess that means the price of ferrosilicon isn't going up any time soon," one trader said.

"I'm surprised, but I guess we can get on with our lives now," said another trader.

But a third trader said he was not surprised at the final outcome, because he believed the staff at RFA had previous experience in fighting antidumping cases. "They knew how to defend it, so I'm not surprised they succeeded," he said.

Another ferroalloys supplier said: "It's not a real surprise they [Commerce] did not change their [preliminary] ruling."

Russia was by far the larger supplier of ferrosilicon compared with Venezuela. In 2013, the US imported 85,400 mt of ferrosilicon from Russia, valued at $117.47 million, down from 112,400 mt in 2012, the year before the petition was filed. The 2012 imports from Russia were valued at $153.4 million. In 2011 the US imported 85,100 mt of ferrosilicon from Russia, worth $134.3 million.

In 2013 the US imported 31,300 mt of ferrosilicon from Venezuela, valued at $43.26 million, and 28,100 mt in 2012, valued at $39.47 million. In 2011, the US imported 21,100 mt, valued at $32.48 million.

Calls to Globe Specialty Metals seeking comment were not returned.