U.S. Department of Commerce Imposes Final Duties on All Silicon Metal Imports From Malaysia, US Producers Report

Rhea-AI Summary

The U.S. Department of Commerce has finalized a 12.27% duty on all silicon metal imports from Malaysia, following investigations initiated by Globe Specialty Metals and Mississippi Silicon to combat unfair trade practices. These efforts aim to protect U.S. producers from subsidized imports. Previous rulings have also set duties up to 160% on silicon metal imports from Bosnia, Herzegovina, Iceland, and Kazakhstan. Executives from GSM and MS view this decision as a significant step towards restoring fair competition in the U.S. silicon market.

Positive

• Final duties of 12.27% on Malaysian silicon metal imports may protect U.S. producers.
• Previous investigations led to favorable outcomes, including duties up to 160% on imports from Bosnia, Herzegovina, Iceland, and Kazakhstan.
• Executives state increased fair competition may support U.S. jobs and investments.

Negative

• None.

WASHINGTON, June 17, 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 reported that the U.S. Department of Commerce ("Commerce") will impose final duties of 12.27% on all silicon metal imports from Malaysia.

Today's decision closes out a set of investigations requested by GSM and MS last June to stop producers in four countries, including Malaysia, from selling dumped and unfairly subsidized metal imports into the United States – now, all have resulted in favorable final rulings. On March 24, 2021, the U.S. International Trade Commission (ITC) unanimously determined that imports from Bosnia and Herzegovina, Iceland, and Kazakhstan are a cause of material injury to the U.S. industry. On April 19, 2021, Commerce issued final antidumping and countervailing duty orders imposing duties as high as 160% on all imports of silicon metal of Bosnia and Herzegovina, Iceland, and Kazakhstan.

"Massive subsidies and other unfair trade practices have deeply hurt U.S. producers and workers over time. Today's decision is a welcome step in the right direction to get the market back on track," said Marco Levi, Chief Executive Officer of GSM's parent, Ferroglobe. "We appreciate the diligent efforts by the Commerce Department to enforce America's trade laws and give all players a chance to compete fairly."

"Today's announcement is good news for our industry, our company, and our workers," said Eddie Boardwine, Chief Operations Officer of MS. "The results of this case and the companion cases should allow American producers to earn a reasonable return, invest in our operations, and continue to support jobs that pay well and provide important benefits to our workers, their families, and our community."

Following today's announcement, the ITC will provide an additional opportunity for comments before making its final determination.  The schedule for these activities has not been released.

For more on the petitions, see the companies' press release.

For more on Commerce's final determination in the Bosnia and Herzegovina, Iceland, and Kazakhstan investigations, see the agency's fact sheet.

For more on the ITC's final determination, see the Commission'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.

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

Globe and Mississippi Silicon are represented in these proceedings by Adam H. Gordon, Esq. of The Bristol Group PLLC.

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

View original content:http://www.prnewswire.com/news-releases/us-department-of-commerce-imposes-final-duties-on-all-silicon-metal-imports-from-malaysia-us-producers-report-301315094.html

SOURCE Globe Specialty Metals / Mississippi Silicon

FAQ

What are the new duties on silicon metal imports from Malaysia by GSM?

The U.S. Department of Commerce has imposed a final duty of 12.27% on all silicon metal imports from Malaysia.

What is the impact of the duties on U.S. silicon producers?

The duties are expected to help U.S. producers compete fairly against subsidized imports, potentially improving profitability and job security.

When were the investigations into silicon metal imports initiated?

The investigations were initiated in June 2020 by Globe Specialty Metals and Mississippi Silicon.

What other countries have duties imposed on silicon metal imports?

Duties of up to 160% have been imposed on imports from Bosnia, Herzegovina, Iceland, and Kazakhstan.

How do these duties affect the future of the silicon metal market in the U.S.?

These duties are viewed as a positive step to restore market balance, allowing U.S. producers to earn reasonable returns and invest in operations.