The U.S. Commerce Department ("Commerce") has announced the imposition of preliminary antidumping duties ("AD") of 283.27 percent and countervailing duties ("CVD") of 748.58 percent on all imports of ferrosilicon from Russia. This decision comes in response to petitions filed by U.S. ferrosilicon producers CC Metals and Alloys, LLC ("CC Metals") and Ferroglobe USA, Inc. ("Ferroglobe"), who sought investigations into unfairly priced and subsidized imports of ferrosilicon from Russia, Kazakhstan, Malaysia, and Brazil. The investigations were initiated on April 17, 2024.
These substantial duties aim to counteract the unfair pricing practices and improper subsidies that Russian producers and exporters have benefitted from. According to Commerce, these subsidies have allowed Russia to dominate the U.S. ferrosilicon import market, accounting for over 30% of all imports in 2023. Marco Levi, Chief Executive Officer of Ferroglobe PLC, stated, "Today's announcement confirms that Russian producers and exporters received massive government subsidies that have allowed them to flood the U.S. market with unfairly traded ferrosilicon imports. These preliminary duties begin the process of removing the market and price distortions caused by improper Russian government intervention and support."
Chris Cobb, Plant Manager of CC Metals and Alloys, Inc., echoed this sentiment, saying, "Commerce's decision validates our analysis that Russian producers and exporters have not been playing by the rules of international trade that they agreed to follow. We are grateful to Commerce staff for its hard work and commitment to enforcing U.S. trade laws and ensuring that everyone complies with their international obligations. We look forward to seeing a level playing field restored."
Once Commerce's determination is published in the Federal Register, all importers of Russian ferrosilicon will be required to post cash deposits or a bond to secure the significant potential duties they may owe. This procedural step is expected to have an immediate financial impact on importers, potentially leading to a reduction in the volume of Russian ferrosilicon entering the U.S. market.
Commerce is also continuing its investigations into imports from Kazakhstan, Malaysia, and Brazil. Preliminary CVD determinations for these countries will be made by August 12, 2024, and AD determinations by October 24, 2024. Should these investigations also result in affirmative determinations, provisional duties on imports from Kazakhstan, Malaysia, and Brazil will be collected based on the preliminary margins calculated by Commerce.
The imposition of these duties is a significant development in the international trade landscape, particularly for the U.S. ferrosilicon industry. By addressing unfair trade practices, the Commerce Department aims to restore fair competition and protect domestic producers from market distortions caused by foreign subsidies and dumping.
For more information, visit CC Metals and Ferroglobe.
