Globe Specialty Metals and Mississippi Silicon File Unfair Trade Cases Against Bosnia and Herzegovina, Iceland, Malaysia, and Kazakhstan

Rhea-AI Summary

Globe Specialty Metals, Inc., a subsidiary of Ferroglobe PLC (NASDAQ:GSM), along with Mississippi Silicon LLC, has petitioned the U.S. Department of Commerce and the U.S. International Trade Commission to impose antidumping and countervailing duties on silicon metal imports from Bosnia and Herzegovina, Iceland, Malaysia, and Kazakhstan. The petition claims dumping margins of 54% to 85% and seeks relief through special duties to offset unfair pricing. The inquiry is expected to be initiated by July 20, 2020, with a preliminary determination by August 14, 2020.

Positive

• Petitioning U.S. authorities may protect domestic silicon metal producers from unfair competition.
• Potential for special duties on imports could stabilize pricing for American manufacturers.

Negative

• Potential trade disputes may arise, affecting international relationships.
• If duties are not imposed, GSM may continue to face pricing pressure from imports.

MIAMI, June 30, 2020 (GLOBE NEWSWIRE) -- Globe Specialty Metals, Inc., a subsidiary of Ferroglobe PLC (NASDAQ:GSM) (“GSM”), and Mississippi Silicon LLC (“MS”), collectively representing the majority of American silicon metal production, today petitioned the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“ITC”) to stop silicon metal producers in Bosnia and Herzegovina, Iceland, Malaysia and Kazakhstan from selling dumped and unfairly subsidized silicon metal imports into the United States.

The antidumping (AD) and countervailing duty (CVD) petitions outline deliberate practices to sell silicon metals at less than fair value and allege dumping margins ranging from 54% to 85% as well as numerous unfair subsidies. The companies seek relief in the form of special duties on all associated imports to offset unfair pricing and unfair subsidies.

“Over the past three years, unfairly priced and subsidized imports have harmed American producers,” said Marco Levi, Chief Executive Officer of GSM’s parent, Ferroglobe PLC. “This is precisely what the ITC found in May when it continued anti-dumping duties on silicon metal imports from Russia.”

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 is also a critical raw material used 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 purified form of silicon used in solar cells and semi-conductors.

“Our companies can compete with anyone in the world, as long as we’re all playing by the same rules,” said Eddie Boardwine, Chief Operations Officer of MS. “Fortunately, our trade laws are set up to support fair trade. On behalf of our employees, customers, and colleagues, we look forward to seeing those laws enforced and those who violate our laws held accountable.”

The next steps in the process will be the initiation of Commerce antidumping and countervailing duty investigations by July 20, 2020, and a preliminary ITC determination by August 14, 2020.

About Globe Specialty Metals

Globe Specialty Metals, Inc. is a wholly-owned U.S. subsidiary of Ferroglobe PLC, a leading global producer of silicon metal, silicon-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.

INVESTOR CONTACT:
Gaurav Mehta, EVP - Investor Relations
investor.relations@ferroglobe.com

FAQ

What is the petition filed by GSM regarding silicon metal?

GSM has filed a petition to stop imports of silicon metal from certain countries, claiming they are sold at dumped prices.

What are the alleged dumping margins in the GSM petition?

The petition claims dumping margins ranging from 54% to 85% for silicon metal imports.

What are the next steps in the GSM petition process?

The U.S. Department of Commerce is expected to initiate investigations by July 20, 2020, and a preliminary determination by the ITC is expected by August 14, 2020.

How could the petition impact GSM's stock performance?

If the petition leads to the imposition of duties, it may improve GSM's pricing power and overall market conditions.