Ryan’s Notes
September 15, 2014

US awaits ferrosilicon direction

Market sources were quick to comment on speculation surrounding Globe Specialty Metals and CC Metals and Alloys' intentions to appeal the US International Trade Commission's decision with regard to antidumping duties on Russian ferrosilicon. It could be 30 days following the August 29th filing before any additional details are divulged and what the next steps could be. Sources suggested that the appeal could drag out for another year.

One source noted, "Globe is just looking for another way to drag out the case and create additional uncertainty in the US market."

At the close of last week, prices had not yet moved despite the appeal. Several market participants were expecting prices to drop rapidly with the influx of Chinese material, as Russian and Venezuelan imports were mostly, if not nearly all, reserved for contractual obligations during the long case with the US Department of Commerce and US International Trade Commission.

One RFQ for a US mill was believed to have closed on Friday, while the sale price was not yet confirmed. Many market participants were expecting to use the sale price as indication over the near-term trend, specifically for Chinese material. As the major suppliers enter contract negotiations in the coming weeks, producers and principal importers will likely attempt to sustain current pricing levels ahead of the talks with buyers.