Commerce Imposes Preliminary Duties on All Silicon Metal Imports From Malaysia; U.S. Producers Welcome Announcement
On January 27, 2021, Globe Specialty Metals, a subsidiary of Ferroglobe (NASDAQ:GSM), welcomed the U.S. Department of Commerce's decision to impose preliminary duties of 7.41% on silicon metal imports from Malaysia. This move follows an ITC investigation confirming that imports from Malaysia and other countries have harmed the U.S. silicon metal industry. The decision aims to rectify unfair pricing practices and protect domestic producers. Final determinations regarding duties for Malaysia will be made in early June 2021, while other investigations are expected to conclude on February 21, 2021.
- Preliminary duties of 7.41% on Malaysian silicon metal imports could enhance margins for domestic producers.
- The U.S. Department of Commerce's action addresses unfair pricing, potentially stabilizing the U.S. silicon metal market.
- None.
WASHINGTON, Jan. 27, 2021 /PRNewswire/ -- Globe Specialty Metals, Inc., a subsidiary of Ferroglobe PLC (NASDAQ:GSM) ("GSM"), and Mississippi Silicon LLC ("MS"), together representing the majority of American silicon metal production, today welcomed news that the U.S. Department of Commerce ("Commerce") will impose preliminary duties of
Last August, the U.S. International Trade Commission (ITC) preliminarily determined that imports from Malaysia, along with Bosnia and Herzegovina, Iceland, and Kazakhstan, are a cause of material injury to the U.S. industry. On November 30, 2020, Commerce subsequently announced duties of
"Today's announcement is good news for our industry," said Eddie Boardwine, Chief Operations Officer of MS. "The margins announced reflect unfair pricing by Malaysian producers that has distorted, and seriously harmed, the U.S. silicon metal market. Commerce's decision creates significant risk to importers, whose final duty obligation will remain uncertain for several years. We appreciate the government's efforts to respond to unfair trade practices and look forward to seeing conditions in the U.S. market reflect free and fair trade of silicon metal."
On June 30, 2020, GSM and MS filed petitions to stop silicon metal producers in the four aforementioned countries from selling dumped and unfairly subsidized silicon metal imports into the United States. In their petitions, the companies asked Commerce and the ITC to impose duties to offset these unfair trade practices.
"Unfairly-traded silicon metal from countries like Malaysia has long been a challenge for our industry – today's announcement is another welcome step toward leveling the playing field in the U.S. market," said Marco Levi, Chief Executive Officer of GSM's parent, Ferroglobe. "We appreciate the diligent efforts by the Commerce Department in this investigation."
Final determinations will be announced in the Kazakhstan, Iceland, and Bosnia and Herzegovina investigations on February 21, 2021. Commerce's final determination in the Malaysia investigation will be announced in early June, 2021.
Silicon metal is an important element added to various grades of aluminum alloys used in performance applications such as automotive components and aerospace products. Silicon metal also is a critical raw material in the production of silicone compounds used in numerous products including sealants, adhesives, rubber gaskets, caulking compounds, lubricants, food additives, coatings, polishes, and cosmetics, among others. In addition, silicon metal is the base material in the production of polysilicon, a highly purified form of silicon used in solar cells and semi-conductors.
For more on the petitions, see the companies' press release.
For more on the ITC's investigation, see the Commission's press release.
For more on Commerce's investigations, see the agency's press release.
For more on Commerce's preliminary determination in the Kazakhstan investigation, see the agency's press release.
For more on Commerce's preliminary determination in the Bosnia and Herzegovina and Iceland investigations, see the agency's press release.
About Globe Specialty Metals and Mississippi Silicon
Globe Specialty Metals, Inc. is a wholly-owned U.S. subsidiary of Ferroglobe PLC, one of the world's leading suppliers of silicon metal, silicon- and manganese- based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. Through its subsidiaries, GSM owns metallurgical manufacturing facilities and other operations in Ohio, West Virginia, New York, Alabama, Indiana, Florida and Kentucky.
Mississippi Silicon LLC is a partnership between Rima Holding USA, Inc. and Clean Tech I LLC. Rima Holding USA Inc. is the majority owner of MS and also is associated with Rima Industrial S/A, a leading ferroalloy and non-ferrous metals producer in Brazil. Clean Tech I LLC is a partnership composed of strategic investors and financial advisers. MS's manufacturing operation is based in Burnsville, MS, and its silicon metal serves customers throughout the United States.
Globe and Mississippi Silicon are represented in these proceedings by Adam H. Gordon, Esq. of The Bristol Group PLLC.
For more information, visit http://investor.ferroglobe.com and https://www.missilicon.com/.
Contact Elizabeth Heaton, elizabeth@EAHstrategiesLLC.com, 202-445-9858.
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SOURCE Globe Specialty Metals / Mississippi Silicon
FAQ
What are the preliminary duties imposed by the U.S. on silicon metal imports from Malaysia?
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