On August 28, 2024, the International Trade Administration of the U.S. Department of Commerce announced preliminary findings concerning ferrosilicon imports from the Russian Federation. This determination arises from antidumping duty and countervailing duty investigations initiated earlier this year. The investigations are crucial as they assess whether Russian imports have surged significantly, potentially harming domestic industries. Key players in this case include CC Metals and Alloys, and Ferroglobe USA, who filed allegations prompting these critical circumstances determinations.
The investigations cover two periods: the AD period from July 1, 2023, through December 31, 2023, and the CVD period from January 1, 2023, through December 31, 2023. The concerns raised by the petitioners include a notable increase in ferrosilicon imports from Russia, which escalated from zero to 5,744.922 metric tons between the base period (January to March 2024) and the comparison period (April to June 2024). Such a dramatic rise in imports is classified as "massive" under U.S. trade regulations, prompting the ITA to investigate further.
The petitioners have also raised allegations regarding subsidies that may violate the World Trade Organization's Agreement on Subsidies and Countervailing Measures (SCM Agreement). Specifically, they claim that Russian producers, particularly Russian Ferro Alloys Inc./RFA International LP, benefited from programs that provide financial incentives contingent on using domestic materials over imports. These findings are crucial as they could lead to significant financial penalties for Russian exporters if the allegations are substantiated.
In terms of dumping, the ITA's preliminary determinations suggest a history of unfair pricing practices by Russian exporters. Evidence indicates that imports were sold at less than fair value, which could inflict material injury on U.S. producers. The ITA has assigned a preliminary dumping margin of 283.27% to the Russia-wide entity, exceeding the threshold that implies importers were aware of the potential injury caused by these imports.
As the ITA prepares for final determinations due by September 11, 2024, the implications for Russian ferrosilicon exports could be profound. Should the preliminary findings be confirmed, U.S. Customs and Border Protection will suspend liquidation of any unliquidated entries of ferrosilicon from Russia, effectively imposing tariffs that could disrupt trade flows. This situation illustrates the complexities of international trade, where regulatory frameworks and market dynamics intersect.
