Unfair Trade Practices in Ferrosilicon Imports: The U.S. Response
Ferrosilicon, a crucial alloy used in the production of steel, is imported globally, including from countries like Brazil, Kazakhstan, and Malaysia. These countries have recently come under scrutiny for practices that violate U.S. trade rules, resulting in the U.S. Department of Commerce taking actions against unfair trade. The investigations, which cover the period from January 1, 2023, to December 31, 2023, have revealed that ferrosilicon from these countries is being dumped (sold at unfairly low prices) or subsidized by their governments, causing harm to U.S. manufacturers.
The Commerce Department's final determinations have resulted in various antidumping and countervailing duties being applied to these imports, aiming to create a level playing field for U.S. producers and protect the domestic industry from unfair competition.
Ferrosilicon Imports from Brazil: Dumping Determination
The U.S. Commerce Department found that ferrosilicon imports from Brazil are being sold at less than fair value. This means Brazilian producers are pricing their ferrosilicon products lower than what is considered fair in the U.S. market, harming U.S. producers. The investigation covered the period from January 1, 2023, to December 31, 2023, and found the following weighted-average dumping margins:
• Companhia de Ferro Ligas da Bahia S.A: 13.66%
• Ligas de Aluminio S.A: 21.78% (based on facts available with adverse inferences)
• Minasligas S.A: 0.78% (a de minimis rate, considered negligible)
• All Others: 13.66%
As a result, the U.S. will continue to impose antidumping duties on these imports from Brazil to prevent the negative impacts on local industry.
Ferrosilicon Imports from Kazakhstan: Dumping Determination
Similarly, the Commerce Department also found that ferrosilicon imports from Kazakhstan are being sold at less than fair value. The investigation, again covering the period from January 1, 2023 to December 31, 2023, led to the following dumping margins:
• YDD Corporation LLP, Asia FerroAlloys LLP, KazSilicon Metallurgical Combine LLP: 6.01%
• TNC Kazchrome JSC: 6.20%
• All Others: 6.05%
These findings underscore concerns over the dumping of ferrosilicon from Kazakhstan into the U.S. market at unfair prices. The imposition of antidumping duties is intended to protect U.S. manufacturers from this trade distortion.
Ferrosilicon Imports from Malaysia: Countervailing Subsidy Determination
In addition to concerns about dumping, the U.S. Department of Commerce also examined whether the government of Malaysia is providing unfair subsidies to its ferrosilicon producers. The investigation revealed that producers and exporters of ferrosilicon from Malaysia are benefiting from countervailable subsidies. These subsidies are provided by the Malaysian government and create an unfair advantage for the producers in the global market.
The estimated subsidy rates for Malaysian producers for the period January 1, 2023, through December 31, 2023, are as follows:
• OM Materials (Sarawak) Sdn. Bhd: 2.78%
• Pertama Ferroalloys Sdn. Bhd: 3.48%
• All Others: 3.08%
To address this, the U.S. will impose countervailing duties on Malaysian ferrosilicon imports to offset these unfair subsidies.
Impact and Next Steps
The U.S. Department of Commerce is committed to protecting U.S. industries from unfair trade practices like dumping and subsidies. These determinations will ensure that ferrosilicon imports from Brazil, Kazakhstan, and Malaysia face antidumping and countervailing duties to restore fairness in the market.
Key Takeaways:
• Brazil and Kazakhstan’s ferrosilicon imports are found to be sold at less than fair value (LTFV), resulting in antidumping duties.
• Malaysia’s ferrosilicon producers are benefiting from countervailable subsidies, leading to the imposition of countervailing duties.
• Final antidumping margins for Brazil’s ferrosilicon exports range from 0.78% to 21.78%.
• Final antidumping margins for Kazakhstan’s ferrosilicon exports range from 6.01% to 6.20%.
• Subsidy rates for Malaysian ferrosilicon exports range from 2.78% to 3.48%.
• All Others in each case will face the weighted average margin/subsidy rate of the respective country.
• The U.S. Department of Commerce aims to level the playing field and protect U.S. manufacturers by ensuring fair pricing and competition in the ferrosilicon market.
This final determination was issued by the U.S. Department of Commerce to address ongoing trade concerns related to unfair trade practices in the global ferrosilicon market. The imposition of antidumping and countervailing duties will continue to safeguard the interests of U.S. manufacturers.
