The US International Trade Commission (ITC) today found that imports of silicon metal from four countries do not injure domestic industry, countering market expectations that duties would be enforced.
ITC provided a negative determination on potential antidumping and countervailing duties against silicon imports from Australia, Brazil, Kazakhstan and Norway after a nearly year-long investigation prompted by producer FerroGlobe.
FerroGlobe said it disagreed with the ruling and will review the ITC determination with its counsel and decide on its next steps.
US market participants previously expected a positive determination in the case. The four countries represented roughly 56pc of total imports, or 64,335t, in 2016.
The US Commerce Department proposed antidumping duties as high as 133.49pc and countervailing duties as high as 100pc during its final decision in early March.
The move comes as silicon metal consumers wrap up second quarter contracts to hedge against further cost increases. Higher prices for silicon have been a significant raw material concern for US secondary aluminum smelters as it is used for alloying purposes. US silicon metal prices have increased by 42pc to $1.44-1.46/lb since 8 March 2017, the initial petition date.
The proposed duties by Commerce were largely accounted for in current spot market prices, raising concerns that the ITC's ruling could bring about a reversal in most of the gains.
Petitioner FerroGlobe previously expected its output of silicon metal to increase in 2018, in part driven by the restart of its Selma, Alabama, smelter in August 2017. Shipments of metal from the company were down by 4.5pc to 325,884t in 2017 from 2016.
FerroGlobe also appealed a decision by Canada to cancel duty investigations against seven countries in mid-December.
