U.S. Silicon Metal Producers Welcome Duties on Unfairly Traded Silicon Metal Imports From Bosnia and Herzegovina, Iceland

Rhea-AI Summary

On December 8, 2020, the U.S. Department of Commerce announced preliminary duties of up to 47.54% on silicon metal imports from Bosnia and Iceland. This decision follows ongoing investigations into unfairly-traded silicon metal imports from multiple countries, including a previous determination of up to 120% duties on imports from Kazakhstan. Officials from Globe Specialty Metals (GSM) and Mississippi Silicon (MS) expressed that these duties will help stabilize market conditions and restore competitive balance. Further preliminary determinations for Malaysia are expected on January 27, 2021.

Positive

• Preliminary duties of up to 47.54% on silicon metal imports from Bosnia and Iceland are expected to enhance GSM's competitive standing.
• The duties align with a previous ruling imposing 120% duties on imports from Kazakhstan, reinforcing market protections.
• The actions are seen as a positive move for the U.S. silicon metal industry, potentially benefiting GSM and MS.

Negative

• None.

MIAMI, Dec. 09, 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 December 8^th that the U.S. Department of Commerce ("Commerce") will impose preliminary duties of up to 47.54% on all silicon metal imports from Iceland and Bosnia and Herzegovina.

This announcement is the latest development in ongoing investigations of unfairly-traded silicon metal imports from Bosnia and Herzegovina, Iceland, Malaysia and Kazakhstan and closely follows an announcement that Commerce will impose preliminary duties up to 120% on all silicon metal import from Kazakhstan. In August, the U.S. International Trade Commission (“ITC”) preliminarily determined that imports from all four countries are a cause of material injury to the U.S. industry.

“The fact that suppliers in Bosnia and Herzegovina and Iceland have distorted the market has made it difficult for us to compete,” said Marco Levi, Chief Executive Officer of GSM’s parent, Ferroglobe. “Like the duties recently imposed on imports from Kazakhstan, these duties will level the playing field and help restore real, honest competition. We appreciate the diligent efforts by the Commerce Department to see that the trade rules are followed.”

“The Commerce Department’s actions to address unfairly-traded imports from Bosnia and Herzegovina and Iceland come as good news to our business, our workers, and our entire industry,” said Eddie Boardwine, Chief Operations Officer of MS. “We greatly appreciate the government’s efforts to stop 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 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 Malaysia investigation on January 27, 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 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 are the new duties on silicon metal imports from Bosnia and Iceland?

The U.S. Department of Commerce announced preliminary duties of up to 47.54% on silicon metal imports from Bosnia and Iceland.

How will the new duties affect Globe Specialty Metals (GSM)?

The new duties are expected to improve GSM's competitive position by addressing unfair trade practices in the silicon metal market.

When will preliminary determinations for Malaysia's silicon metal imports be announced?

Preliminary determinations for Malaysia are expected on January 27, 2021.

What was the impact of prior duties on silicon metal imports from Kazakhstan?

Previous duties of up to 120% on imports from Kazakhstan were implemented to protect the U.S. silicon metal industry from unfair competition.