American Metal Market
AMM
July 23, 2014
By Daniel Fitzgerald

Schumer backs US ferrosilicon firms

NEW YORK - Sen. Charles Schumer (D., N.Y.) has urged the Commerce Department to consider allegations from companies including Globe Specialty Metals Inc. that Russian suppliers of ferrosilicon "misreported critical facts" during the agency's anti-dumping investigation.

In a letter to Commerce Secretary Penny Pritzker, Schumer expressed concerns about Commerce's preliminary decision not to levy duties on Russian imports (amm.com, March 5). A final ruling is expected this week.

"U.S. petitioners have informed me that a negative preliminary determination was issued in the ferrosilicon investigation because the Russian exporter misreported critical facts needed to calculate the margin of dumping properly," Schumer said in the letter. "They allege that the Russian exporter portrayed payments received in connection with its sales as revenue received for separate 'post-sale' services (such as sizing and warehousing), when these payments should have been treated as part of the revenue received for the merchandise. Additionally, the U.S. petitioners indicate that the Russian exporter misreported the shipment dates for many of its home market sales. If accurate, this misreporting would substantially distort the calculations to determine the potential margin of dumping.

"In light of these allegations and the threat they may pose to effective enforcement of our trade remedy laws, we ask that you give full consideration to the U.S. petitioners' concerns," he said. "We must ensure that U.S. ferrosilicon producers are competing on a level playing field with their foreign competitors. Strict enforcement of our trade laws is needed to protect American manufacturing companies across the country from unfair foreign practices."

Should Commerce decide not to impose any duties on Russian imports, the U.S. ferrosilicon market will be flooded "with cheap products to edge out U.S. competition," Schumer said.

"If the allegations of dumping are true, then we need to stop this Russian company dead in its tracks. This company could be hurting our businesses by selling their products at artificially cheap prices," he said. "Russian metal producers may already benefit from collusion with a deceitful Russian government. They should not be able to get any further advantage over U.S. businesses."

Schumer noted that Globe had previously been forced to idle its Niagara Falls, N.Y, operations due to a surge of cheap silicon metal imports from Russia in the early part of this century, and that the plant was only able to reopen when Commerce later imposed anti-dumping duties on the silicon metal imports (amm.com, Feb. 12, 2010).

"Unfair trade practices in the U.S. ferrosilicon market have the potential to cripple Globe's overall operations and threaten the continued viability of the Niagara Falls plant," he said.

Mishawaka, Ind.-based importer Russian Ferroalloys Inc., denied claims that shipment information was misreported. "It is unfortunate that parties in this investigation continue to make these false claims and also continue to peddle them to members of Congress," president Doug Anderson said.

Globe and CC Metals and Alloys LLC petitioned Commerce for an anti-dumping investigation in July 2013 (amm.com, July 19, 2013).