In late April, the US Department of Commerce announced the initiation of anti-dumping (AD) and countervailing (CV) duty investigations regarding ferrosilicon imports from Russia, Brazil, Malaysia, and Kazakhstan.

The announcement follows the filing of a petition with the US Department of Commerce and the US International Trade Commission by US ferrosilicon producers Ferroglobe USA and CC Metals and Alloys (CCMA) in late March requesting the imposition of new AD and CV duties on all ferrosilicon imports from the abovementioned countries based on claims that they are underselling domestic ferrosilicon by unfair margins.

According to trade data, the USA imported approximately 228kt of ferrosilicon (>55% Si and ≤55% Si) in 2023, with imports from Russia, Brazil, Malaysia, and Kazakhstan accounting for approximately 36%, 15%, 10%, and 6% of the import volume, respectively. The investigation request alleges that these countries are taking advantage of dumping margins ranging from 20% to 212% and numerous subsidies. Essentially, the import of relatively cheap ferrosilicon drives prices down, resulting in US producers potentially being unable to recover costs when labour and raw materials costs increase.

In addition, this announcement follows the news of the nationalisation of three major Russian ferroalloy plants, namely the Chelyabinsk Electrometallurgical Plant (ChEMK), Serov Ferroalloy Plant, and Kuznetsk Ferroalloys, that, together, account for more than 80% of Russia’s total ferroalloy production. While these plants are still operational, it is highly likely that they will now face restrictions or sanctions should they attempt to trade with the West.

Furthermore, legislation supporting domestic ferrosilicon production while increasing duties on ferrosilicon imports from Russia, namely the Increasing American Ferrosilicon Production Act, was introduced in September 2023. While this legislation has not yet been passed, Ferroglobe USA and CCMA support the legislation and are willing to increase production, as they have sufficient excess capacity to meet domestic demand when supported by imports from countries other than Russia.

Preliminary determinations regarding both the AD and CV duty investigations are expected from the US International Trade Commission on 12 May. Should a negative preliminary determination of injury be made, the corresponding AD and CV duty investigations will be terminated.