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Ryan’s Notes
August 29, 2014

USITC says ‘no’ to duties on ferrosilicon

The US International Trade Commission (ITC) announced this week a negative final determination of anti-dumping duties on Venezuelan ferrosilicon. The ITC reported that the US industry was neither materially injured nor was it threatened with material injury by Venezuelan imports. The announcement followed the Department of Commerce's 22.84% duty determination earlier this quarter.

Some market participants were not expecting this outcome. Moreover, it was previously determined that Russian imports would also escape any duties in the investigation on behalf of US-based Globe Specialty Metals and CC Metals and Alloys.

One market observer called it the biggest 'non-event' of the year. With the threat of duties on ferrosilicon imports a thing of the past, some players were quick predict about a fall in ferrosilicon prices. Others were not so quick to forecast the fall, as they noted that, while prices for Chinese ferrosilicon were low, freight costs have risen, so any large drop could be lessened by the heightened freight costs.

Regardless of opinion in the US market over near-term trends, there was little-to-no activity in the market that would signal any movement. Sources reported to CRU Ryan's Notes that the spot market has been slow and minimal all summer. At least one mill, however, was expected to close before mid-September on a fixed price, perhaps lending some clarity as to where importers would be willing to settle the tendered volumes.

According to the release by the ITC, its full report on the final determination will be made available to the public after September 30, 2014.