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

Rhea-AI Summary

Globe Specialty Metals, a subsidiary of Ferroglobe PLC (NASDAQ:GSM), alongside Mississippi Silicon, has petitioned the U.S. Department of Commerce and the ITC to impose antidumping and countervailing duties on silicon metal imports from Bosnia, Iceland, Malaysia, and Kazakhstan. The petition cites dumping margins between 54% to 85%, claiming these imports are unfairly priced and subsidized, harming U.S. producers. The ITC previously found similar practices affecting imports from Russia. The investigations are set to begin by July 20, 2020, with preliminary results expected by August 14, 2020.

Positive

• Petitioning for antidumping and countervailing duties could lead to increased protection for U.S. silicon metal producers.
• The investigation could validate the claims of unfair competition, potentially resulting in increased market prices for domestic producers.

Negative

• If the investigations do not support the claims, it could result in no changes to current trade conditions, leaving U.S. producers vulnerable to ongoing competition.

WASHINGTON, June 30, 2020 /PRNewswire/ -- 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 metal 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 GSM and MS

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.

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 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.

For more information, visit http://investor.ferroglobe.com and https://www.missilicon.com/

Contact Elizabeth Heaton, elizabeth@EAHstrategiesLLC.com, 202-445-9858

 

View original content:http://www.prnewswire.com/news-releases/globe-specialty-metals-and-mississippi-silicon-file-unfair-trade-cases-against-bosnia-and-herzegovina-iceland-malaysia-and-kazakhstan-301085915.html

SOURCE Globe Specialty Metals / Mississippi Silicon

FAQ

What is the recent action taken by Globe Specialty Metals (GSM)?

GSM and Mississippi Silicon filed petitions to the U.S. Department of Commerce to impose antidumping and countervailing duties on silicon metal imports from several countries.

When will the investigations into the silicon metal imports start?

The investigations by the U.S. Department of Commerce are set to begin by July 20, 2020.

What are the alleged dumping margins for the imports from Bosnia and other countries?

The petition alleges dumping margins ranging from 54% to 85% for silicon metal imports from Bosnia, Iceland, Malaysia, and Kazakhstan.

How could the outcome of these petitions affect the stock price of Ferroglobe PLC (GSM)?

If duties are imposed, it could lead to improved financial performance for GSM, potentially boosting its stock price.

What is the significance of silicon metal in various industries?

Silicon metal is crucial in producing aluminum alloys, silicone compounds, and polysilicon for solar cells and semiconductors.