Deadline set for review of ferro-silicon import duties

Date: 24/10/1996

THE European Commission's anti-dumping unit is about to close the door to further submissions relating to its review of the duties imposed on ferro-silicon imports from Brazil.

Firms have until Monday (28 October) to respond to the Commission's request for evidence as it considers whether such imports should continue to be taxed to bring them into line with their European equivalents.

The move comes four weeks after the Commission initiated an interim review of its three-year-old anti-dumping duties on imports of the Brazilian ferro-silicon, a raw material used in making steel.

In 1993, the Commission decided that Brazilian exporters were dumping the product (which occurs naturally in sand and simply requires electricity to bring it to its industrial state) on the European market, selling it for less than it cost to produce.

But the Commission agreed to reconsider its decision after Brazilian exporter Companhia Brasileira Carbureto de Cálcio requested a review in July this year, arguing that its 1996 export price was substantially higher than that quoted by the Commission during the inquiry leading up to its decision to impose duties three years ago.

“The grounds for the review are based on a significant change of circumstances regarding the findings on dumping established [in 1993],” said the Commission in its Official Journal.

The Commission has sent questionnaires to exporters and importers of ferro-silicon and has told other interested parties they may submit any relevant information or complaints.

Nearly all steelmakers and foundries use ferro-silicon, which may act as a de-oxidiser during the melting process or can be combined with raw steel to create an alloy.

While France, Italy and Spain produce their own, British Steel is among those using Brazilian ferro-silicon.

European manufacturers “would prefer their competitors to follow market conditions”, said an industry expert.

Ferro-silicon producers in Norway, Russia, Ukraine, Venezuela, Iceland and Kazakhstan are watching the Commission's review with interest, as the Union's anti-dumping duties also apply to them.

But even if the Commission finds that Companhia Brasileira Carbureto de Cálcio is selling ferro-silicon at European market prices and lifts the duties, the reprieve would only apply to that company and would not help other exporters.

The Commission's complaints office is, however, preparing for another request for a duty review which is expected from a second Brazilian company.