The problem, at least for ferrosilicon, is that the Brazilian material, virtually all of which came from Ferbasa, is sold through multiple sellers who compete against each other using the same material. It is one of the reasons why dumping is so pervasive with Chinese material. Sellers said in recent quarters, Brazilian ferrosilicon was sold at a discount of around 10¢ to other sellers.
And, there is a general feeling that if Brazil is investigated, China will be included in any suit. In both cases, the resellers had no long-term commitment. “I don’t know one Chinese smelter, with the possible exception of Erdos, who knows what the ferrosilicon is actually being sold at to the mill,” one dealer said. “And, Erdos won’t spend the money to support the rest of the Chinese producers.
If a case on ferrosilicon is launched it comes just when Brazilian material is no longer flooding the market and Ferbasa is no longer the price leader. However, dumping reflects the past not the present market conditions.