The U.S. Commerce Department will investigate the export businesses of the two companies from June 1, 2005, to May 31, 2006, according to company executives. The review is likely to last six months and a decision isn't expected until July next year, according to Layton.

The review began July 25 after Shanghai Jinneng and Jiangxi Gangyuan, both targeting the lucrative U.S. silicon market, sent formal requests to Commerce. Both companies need to demonstrate an absence of government control on exports in order to have the antidumping duty either reduced or revoked.

The Commerce Department will consider if there is an absence of restrictive stipulations associated with an exporters business and export licenses and any legislative enactments decentralizing the company's control. Furthermore, the review will assess whether the companies set export prices independent of the government, and if they have the authority to negotiate contracts and make independent decisions regarding profits or financing of losses.

Shanghai Jinneng and Jiangxi Gangyuan are among the major silicon producers in China, boasting capacities of 20,000 tonnes and 9,000 tonnes per year, respectively. Both specialize in high-purity 2- and 3-series silicon metal, whose sales prices are much higher than 4- and 5-series silicon.

Executives from both companies acknowledged that they face an uphill battle to convince the U.S. to allow them to export. They estimated their chances at 50-50, "but we'd rather make the effort, as the U.S. is a major consumer of silicon metal beyond doubt. But with the entire 139 percent antidumping duty on Chinese products, however, we have no chances at all.

"Chinese silicon production is highly export-oriented, satisfying around 40 percent of worldwide demand. "China's demand for such products is limited, so we have to rely on the export market," the Jiangxi Gangyuan executive said.

The United States has imposed an antidumping duty of more than 139 percent on Chinese silicon metal since the 1990s and Europe re-imposed a 49-percent duty on Chinese products in 2004.