What happened
Shares of Ferroglobe PLC (GSM 1.97%) took a tumble on Friday and were down more than 20% at 2:00 p.m. EDT. Driving the sell-off was a decision by the U.S. International Trade Commission (ITC) determining that silicon metal imports from several countries do not injure the U.S. industry.
So what
Earlier this month the U.S. Department of Commerce determined that silicon metals sold in the U.S. by Australia, Brazil, and Kazakhstan were at less than fair value and subsidized by the governments of those countries at rates as high as 100%. However, the ITC determined that this isn't materially injuring the U.S. industry. As such, the ITC will not issue anti-dumping or other duties on these goods.
Image source: Getty Images.
Ferroglobe, a leading producer of silicon metal for the solar industry, sparked the initial investigations after filing a petition alleging that these three countries were dumping this product onto the U.S. market. Given the findings of the Commerce Department, it disagrees with the ITC's determination and will review it further before taking its next steps.
Now what
The ITC's decision is certainly a blow to Ferroglobe, which had hoped that the U.S. would crack down on the product dumping by rivals and "level the playing field." However, an analyst at Stifel still came out in support of the company's prospects by reiterating a buy rating on the stock, citing positive market fundamentals. That positive view is worth noting for investors who might want to consider taking advantage of today's sell-off.
