U.S. Silicon Metal Producers Welcome Duties on Imports of Silicon Metal from Malaysia
January 28 2021 - 9:00AM
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 January 27th that the U.S. Department of Commerce
("Commerce") will impose preliminary duties of up 7.41% on all
silicon metal imports from Malaysia.
Last August, the U.S. International Trade Commission (ITC)
preliminarily determined that imports from Malaysia, along with
Bosnia and Herzegovina, Iceland, and Kazakhstan, are a cause of
material injury to the U.S. industry. On November 30, 2020,
Commerce subsequently announced duties of 120% on all silicon metal
imports from Kazakhstan, and on December 8, 2020, announced duties
up to 47.54% on imports from Bosnia and Herzegovina and Iceland.
The Commerce and ITC investigations are now in their final
phases.
“Unfairly-traded silicon metal from countries like Malaysia has
long been a challenge for our industry – today’s announcement is
another welcome step toward leveling the playing field in the U.S.
market,” said Marco Levi, Chief Executive Officer of GSM’s parent,
Ferroglobe. “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 the four aforementioned countries from selling
dumped and unfairly subsidized silicon metal imports into the
United States. In their petitions, the companies asked Commerce and
the ITC to impose duties to offset these unfair trade
practices.
“Today’s announcement is good news for our industry,” said Eddie
Boardwine, Chief Operations Officer of MS. “The margins announced
reflect unfair pricing by Malaysian producers that has distorted,
and seriously harmed, the U.S. silicon metal market. Commerce’s
decision creates significant risk to importers, whose final duty
obligation will remain uncertain for several years. We appreciate
the government’s efforts to respond to unfair trade practices and
look forward to seeing conditions in the U.S. market reflect free
and fair trade of silicon metal.”
Final determinations will be announced in the Kazakhstan,
Iceland, and Bosnia and Herzegovina investigations on February 21,
2021. Commerce’s final determination in the Malaysia investigation
will be announced in early June, 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 highly 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
MehtaExecutive Vice President - Investor
Relationsinvestor.relations@ferroglobe.com
MEDIA CONTACT:Cristina Feliu
RoigExecutive Director – Communications & Public
Affairscorporate.comms@ferroglobe.com
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