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[ferro-alloys.com]The US International Trade Commission found Friday reasonable indication that the local magnesium industry was injured or threatened with injury by magnesium imports from Israel.

The commissioners voted 4-1 in the affirmative. The investigation will now move into its final phase, where the US ITC must issue a final determination.

The Commerce Department must also release its preliminary antidumping and countervailing decisions as to whether the imports were dumped and/or subsidized.

The preliminary CVD determination is scheduled for January 17, 2019, and the preliminary AD determination is scheduled for April 2, 2019, unless the deadlines are extended.

The petitions, filed by US Magnesium Corp. on October 24, alleged dumping margins of 92.06%-130.61% and 12 unfair subsidy programs, including seven tax programs and five grant programs.

"The countervailing petition also alleges that the Government of Israel has provided subsidies to the Israeli producer, Dead Sea Magnesium, that are countervailable under US law," US Magnesium said in an October 24 statement.

The investigation covers pure and alloy magnesium made from either primary or secondary material.

Local 8319 of United Steelworkers, a union representing laborers at US Magnesium's plant in Utah, along with magnesium producers MagPro and Advanced Magnesium Alloys Corporation (AMACOR), also supported the petitions.

In 2017, imports of pure and alloyed magnesium from Israel were valued at an estimated $43.5 million and totaled 11,450 mt out of US demand estimated by market sources at around 100,000 mt.

"We are pleased that the ITC voted to continue the case and look forward to the dumping and subsidy investigations to be conducted by the Department of Commerce," Steve Jones, a partner at King & Spalding which is representing US Magnesium in the investigation, said.

Dead Sea Magnesium did not return multiple requests for comment. In a November 14 preliminary conference before the USITC, lawyers and officials of DSM said that imports from Israel were not the cause of dropping prices in the US, but instead pointed to increasing imports from other countries and the closure of Allegheny Technologies' co-located titanium plant in late 2016.

The USITC will release a public report detailing the Commission's views after January 17, 2019.

(G&P Global Platts)

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