Ferroglobe Provides Update on Trade Cases in the United States and Canada
October 06 2017 - 10:22AM
Ferroglobe PLC (NASDAQ:GSM) ("Ferroglobe" or the "Company")
has received news this week on two significant trade cases in which
it is involved: the Department of Commerce's ("DOC") preliminary
determinations imposing antidumping duties on silicon metal imports
into the United States, and the Canada Border Services
Agency’s (“CBSA”) final decision on anti-dumping and subsidy duties
against silicon imports into Canada.
United States
On October 5, 2017, the United States’ Department of Commerce
announced preliminary determinations in the antidumping
investigations on silicon metal. The DOC initiated its
antidumping investigations in response to a petition filed earlier
this year by the leading United States producer of silicon metal,
Globe Specialty Metals, Inc., a subsidiary of Ferroglobe, against
these three countries. The DOC determined antidumping duty rates
of:
|
|
|
|
|
Country |
|
Producer |
|
Dumping Rate |
Australia |
|
Simcoa |
|
20.79% |
|
|
All others |
|
20.79% |
Brazil |
|
Dow
Corning |
|
56.78% |
|
|
LIASA |
|
134.92% |
|
|
All others |
|
56.78% |
Norway |
|
Elkem |
|
3.74% |
|
|
All others |
|
3.74% |
|
|
|
|
|
The resulting cash deposit requirements will go into effect when
the preliminary determinations are published in the Federal
Register and will apply to silicon metal imported into the
United States on or after that date. The determinations are
likely to be published next week.
Globe Specialty Metals filed trade actions targeting two
different types of unfair practices. In addition to the
antidumping cases against imports from Australia, Brazil, and
Norway (which address unfairly low import pricing), the Company
filed countervailing duty cases against imports from Australia,
Brazil, and Kazakhstan (which address unfair government
subsidization). The DOC made affirmative preliminary
determinations in the countervailing duty cases on August 7, 2017.
On a combined basis, the preliminary duty rates resulting from the
antidumping and countervailing duty cases are as follows:
|
|
|
|
|
Country |
|
Producer |
|
Total rate |
Australia |
|
All exporters |
|
37.02% |
Brazil |
|
Dow
Corning |
|
59.93% |
|
|
LIASA |
|
186.45% |
|
|
All others |
|
59.93% |
Kazakhstan |
|
All exporters |
|
120% |
Norway |
|
All exporters |
|
3.74% |
|
|
|
|
|
Based on official United States import data for 2016, more than
63% of silicon metal imports into the U.S. will now be subject to
cash deposit requirements.
Canada
On October 3, 2017, the CBSA issued its final decision on
anti-dumping and subsidy duties for silicon metal imports into
Canada. The CBSA’s final decision is consistent with the
preliminary determinations issued in July 2017, with a few
changes. While the CBSA terminated the dumping investigation
against Brazilian silicon metal producer, RIMA Industrial S.A. it
has now imposed a dumping margin against Polymet Alloys Inc., which
has a longstanding commercial relationship with RIMA. Further,
while the CBSA terminated the dumping finding against Elkem, it has
made a positive finding of subsidization against it.
Based on the import data from Statistics Canada, for 2016, more
than 95% of silicon metal imports into Canada are now subject to
anti-dumping and countervailing duties. The CBSA confirmed final
antidumping and countervailing duty rates of:
|
|
|
|
|
Country |
Producer |
Dumping Rate |
Subsidy Rate |
Total rate |
Brazil |
LIASA |
27.8% |
7.2% |
35.0% |
|
RIMA |
0.0% |
2.7% |
2.7% |
|
Polymet Alloys |
27.8% |
2.8% |
30.6% |
|
All others |
27.8% |
6.0% |
33.8% |
Kazakhstan |
Tau-Ken Temir |
18.2% |
40.3% |
58.5% |
|
All others |
86.5% |
269.7% |
356.2% |
Laos |
All exporters |
85.2% |
n.a. |
85.2% |
Malaysia |
All exporters |
85.2% |
10.6% |
95.8% |
Norway |
Elkem |
n.a. |
2.8% |
2.8% |
Thailand |
SICA |
51.0% |
n.a. |
51.0% |
|
All others |
85.2% |
n.a. |
85.2% |
|
|
|
|
|
The Canadian International Trade Tribunal (CITT) is continuing
its inquiry and will make an order or finding by November 2, 2017.
Provisional duties will continue to apply to imports of subject
goods originating in or exported from Brazil, Kazakhstan, Laos,
Malaysia, Norway and Thailand until the CITT order or
finding.
Ferroglobe’s Executive Chairman, Javier López Madrid,
commented, “These cases demonstrate our commitment to protecting
our investments and our workers so that they can enjoy a stable
work environment and fair wages and we can compete with foreign
producers on a level playing field. We appreciate the dedicated
work of the Department of Commerce of the United States and the
Canada Border Service Agency, essential to achieving such level
playing field for Ferroglobe and its stakeholders in the United
States and Canada, respectively. With the measures taken by
the DOC and CBSA, a significant portion of the imports into North
America are now subject to a duty and the potential for subsequent
review for all subject parties is also an important outcome. We
look forward to working with the trade authorities as they continue
their investigations over the coming months.”
The DOC's full statement regarding the preliminary
determinations will be published at:
https://www.commerce.gov/news/press-releases
The CBSA’s full statement regarding the final decisions are
published at: http://www.cbsa-asfc.gc.ca/sima-lmsi/
INVESTOR CONTACT:
Ferroglobe PLC Joe Ragan, US: +1 917 2098581, UK: +44 (0)
7827 227 688 Chief Financial Officer
Email: jragan@ferroglobe.com
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