U.S. Companies, Labor Unions Ask for AD Duties on Ferrosilicon from Russia and Venezuela
Several U.S. companies and labor unions filed on July 19 petitions for antidumping duties on ferrosilicon from Russia and Venezuela (A-821-820, A-307-824). Globe Specialty Metals, CC Metals and Alloys, and the United Steel Workers (USW) and United Auto Workers (UAW) alleged dumped imports from the two countries are underselling U.S. product and harming U.S. industry. Ferrosilicon is used primarily as an alloying agent in steel and cast iron production.
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According to the petition, in 2012 and 2013 dumped imports from Russia and Venezuela “have captured a very large and growing share of the U.S. ferrosilicon market. The low-priced Russian and Venezuelan ferrosilicon is causing falling market prices and a drop in domestic sales revenue, it said. The domestic industry has also lost market share, with low priced Russian and Venezuelan ferrosilicon enabling those imports to “lock up a large portion of the ferrosilicon requirements of major customers, at the expense of domestic industry,” the petition said. One effect has been a decline in employment, particularly in the already economically-depressed Appalachia and Mississippi Delta regions.
The petition alleges AD rates for Russian imports of 21.85 to 60.77 percent. It says Venezuelan imports are being dumped at rates of 20.07 to 60.11 percent.
Proposed Scope
While the petition does not propose specific scope language, it says the petition covers the following: “all forms and sizes of ferrosilicon, including ferrosilicon slag and briquettes. Ferrosilicon is a ferroalloy containing by weight 4 percent or more iron, more than 8 percent but not more than 96 percent silicon, 3 percent or less phosphorus, 30 percent or less manganese, less than 3 percent magnesium, and 10 percent or less any other element.” A footnote clarifies that “this petition covers ferrosilicon calcium, which contains by weight 4 percent or more iron, more than 55 percent but not more than 80 percent silicon, and more than 3 percent, but not more than 10 percent calcium.”
But the petition ”does not cover magnesium ferrosilicon, which contains by weight 4 percent or more iron, 55 percent or less silicon, and 3 percent or more magnesium. Magnesium ferrosilicon, which is used as a "nodularizer" in the production of ductile iron, typically contains 44 to 48 percent silicon and 3 to 10 percent magnesium,” another footnote says.
The petition listed the following Harmonized Tariff Schedule subheadings for subject ferrosilicon: 7202.21.1000; 7202.21.5000; 7202.21.7500; 7202.21.9000; 7202.29.0010; and 7202.29.0050.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping duty investigations on ferrosilicon from Russia and Venezuela. According to the petition, Globe Specialty Metals and CC Metals and Alloys are the only domestic producers of subject merchandise. Comments are due by about Aug. 8.
Email ITTNews@warren-news.com for a copy of the petition.