American manufacturers Globe Specialty Metals, Inc. (GSM) and Mississippi Silicon LLC, together representing the majority of American silicon metal production, welcomed news that the U.S. Department of Commerce will impose preliminary duties of 120 percent on all silicon metal imports from Kazakhstan.
The announcement is part of ongoing investigations of unfairly traded silicon metal imports from Bosnia and Herzegovina, Iceland, Malaysia and Kazakhstan. In August, the U.S. International Trade Commission (ITC) preliminarily determined that imports from these four countries are a cause of material injury to the U.S. industry.
“Unfair trade practices by foreign suppliers have been an ongoing challenge for our industry,” said Marco Levi, Chief Executive Officer of GSM’s parent, Ferroglobe. “These duties will facilitate normalization of the U.S. market as the government responds to unfairly traded imports. We appreciate the diligent efforts by the Commerce Department in this investigation.”
On June 30, 2020, petitions were filed to stop silicon metal producers in Bosnia and Herzegovina, Iceland, Malaysia and Kazakhstan from selling dumped and unfairly subsidized silicon metal imports into the United States. In their petitions, the companies asked the Commerce and ITC to impose duties to offset unfair pricing and unfair subsidies.
Following this announcement, preliminary determinations will be made in the Bosnia and Herzegovina and Iceland investigations on December 8, 2020 and in the Malaysia investigation on January 27, 2021.
Silicon metal is an important element added to various grades of aluminum alloys used in performance applications such as automotive components and aerospace products. Silicon metal also is a critical raw material in the production of silicone compounds used in numerous products including sealants, adhesives, rubber gaskets, caulking compounds, lubricants, food additives, coatings, polishes and cosmetics, among others. In addition, silicon metal is the base material in the production of polysilicon, a purified form of silicon used in solar cells and semi-conductors.
