New Antidumping Duty and Countervailing Duty Petitions on Ferrosilicon from Brazil, Malaysia, Kazakhstan and Russia

At a Glance

• CC Metals and Alloys, LLC, and Ferroglobe USA, Inc. filed AD and CVD petitions on ferrosilicon from Brazil, Malaysia, Kazakhstan and Russia.
• The U.S. Department of Commerce is expected to begin investigations on April 17.

On March 28, 2024, antidumping duty (AD) and countervailing duty (CVD) petitions were filed on ferrosilicon from Brazil, Malaysia, Kazakhstan and Russia. The petitions were filed by CC Metals and Alloys, LLC, and Ferroglobe USA, Inc. (Petitioners).

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidization is occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of ferrosilicon.

Scope:

The scope of this investigation covers all forms and sizes of ferrosilicon, regardless of grade, including ferrosilicon briquettes. Ferrosilicon is a ferroalloy containing by weight four percent or more iron, more than eight percent but not more than 96 percent silicon, three percent or less phosphorus, 30 percent or less manganese, less than three percent magnesium, and 10 percent or less any other element. The merchandise covered also includes product described as slag, if the product meets these specifications.

Subject merchandise includes material matching the above description that has been finished, packaged, or otherwise processed in a third country, including by performing any grinding or any other finishing, packaging, or processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the country of manufacture of the ferrosilicon.

Ferrosilicon is currently classifiable under subheadings 7202.21.1000, 7202.21.5000, 7202.21.7500, 7202.21.9000, 7202.29.0010, and 7202.29.0050 of the HTSUS. While the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope remains dispositive.

Estimated Dumping Margins:

The Petitioners allege the following dumping margins exist:

Brazil – 20.00%

Kazakhstan – 212.49%

Malaysia – 162.59%

Russia – 143.03%

The Petitioner also alleges significant subsidies with respect to Brazil, Kazakhstan, Malaysia and Russia, although the petitions do not quantify the alleged net subsidy margins.

Estimated Schedule of Investigations:

The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):