U.S. Silicon Metal Producers Welcome Duties on Imports of Silicon Metal from Kazakhstan

Rhea-AI Summary

Globe Specialty Metals (GSM) welcomes the U.S. Department of Commerce's preliminary decision to impose a 120% duty on silicon metal imports from Kazakhstan, aimed at addressing unfair trade practices. This decision follows ongoing investigations of imports from Kazakhstan, Bosnia and Herzegovina, Iceland, and Malaysia, which are determined to harm the U.S. industry. The duties are expected to improve market conditions for U.S. producers. Preliminary determinations for the other countries will be announced soon, with GSM and Mississippi Silicon advocating for fair trade practices.

Positive

• 120% preliminary duty on silicon metal imports from Kazakhstan to protect U.S. industry.
• Ongoing investigations will potentially lead to more duties on imports from Bosnia and Herzegovina, Iceland, and Malaysia.

Negative

• None.

MIAMI, Dec. 01, 2020 (GLOBE NEWSWIRE) -- Globe Specialty Metals, Inc. (“GSM”), a subsidiary of Ferroglobe PLC (NASDAQ: GSM), and Mississippi Silicon LLC (“MS”), together representing the majority of American silicon metal production, welcomed news on November 30^th that the U.S. Department of Commerce ("Commerce") will impose preliminary duties of 120% on all silicon metal imports from Kazakhstan.

The announcement is part of ongoing investigations of unfairly-traded silicon metal imports from Bosnia and Herzegovina, Iceland, Malaysia and Kazakhstan. The U.S. International Trade Commission (ITC) has preliminarily determined that imports from these four countries are a cause of material injury to the U.S. industry.

"Unfair trade practices by foreign suppliers have been an ongoing challenge for our industry," said Marco Levi, Chief Executive Officer of GSM's parent, Ferroglobe. "These duties will facilitate normalization of the U.S. market as the government responds to unfairly-traded imports. We appreciate the diligent efforts by the Commerce Department in this investigation."

On June 30, 2020, GSM and MS filed petitions 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. In their petitions, the companies asked the Commerce and ITC to impose duties on to offset unfair pricing and unfair subsidies.

Following this announcement, preliminary determinations will be announced in the Bosnia and Herzegovina and Iceland investigations on December 8, 2020, and in the Malaysia investigation on January 27, 2021. 

"Today's decision appropriately recognizes the challenges our industry has faced in recent years as a result of dumped and subsidized imports," said Eddie Boardwine, Chief Operations Officer of MS. "We appreciate the government's efforts to respond to unfair trade practices and look forward to seeing conditions in the U.S. market improve in the near future."

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 purified form of silicon used in solar cells and semi-conductors.

About Globe Specialty Metals

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.

INVESTOR CONTACT:
Gaurav Mehta
Executive Vice President - Investor Relations
investor.relations@ferroglobe.com

MEDIA CONTACT:
Cristina Feliu Roig
Executive Director – Communications & Public Affairs
corporate.comms@ferroglobe.com 

FAQ

What duties did the U.S. Department of Commerce impose on GSM's competitors?

On November 30, 2020, the U.S. Department of Commerce imposed a preliminary duty of 120% on silicon metal imports from Kazakhstan.

What is the impact of the duties on silicon metal imports for GSM?

The duties help normalize the U.S. market and protect GSM from unfair trade practices that have harmed the industry.

When will preliminary determinations be announced for other countries?

Preliminary determinations for Bosnia and Herzegovina and Iceland will be announced on December 8, 2020, and for Malaysia on January 27, 2021.

Why is silicon metal important to GSM's business?

Silicon metal is crucial for producing aluminum alloys and silicone compounds, which are used in various applications including automotive and aerospace products.