Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam

Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam Investigation Nos. 701-TA-647 and 731-TA-1517-1520 (Preliminary) Publication 5093 July 2020 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Jason E. Kearns, Chair Randolph J. Stayin, Vice Chair David S. Johanson Rhonda K. Schmidtlein Amy A. Karpel Catherine DeFilippo Director of Operations Staff assigned Keysha Martinez, Investigator Alejandro Orozco, Investigator Raymond Cantrell, Industry Analyst James Horne, Economist David Boyland, Accountant Aaron Woodward, Statistician Courtney McNamara, Attorney Mary Beth Jones, Supervisory Investigator Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov Passenger Vehicle and Light Truck Tires from Korea, Taiwan, Thailand, and Vietnam Investigation Nos. 701-TA-647 and 731-TA-1517-1520 (Preliminary) Publication 5093 July 2020 CONTENTS Page Determinations ....................................................................................................................... 1 Views of the Commission ........................................................................................................ 3 Introduction ................................................................................................................ I‐1 Background ............................................................................................................................. I‐1 Statutory criteria ..................................................................................................................... I‐2 Organization of report ............................................................................................................. I‐3 Market summary ..................................................................................................................... I‐3 Summary data and data sources ............................................................................................. I‐4 Previous and related investigations ......................................................................................... I‐4 Nature and extent of alleged subsidies and sales at LTFV ....................................................... I‐6 Alleged subsidies ................................................................................................................. I‐6 Alleged sales at LTFV ............................................................................................................ I‐7 The subject merchandise ......................................................................................................... I‐8 Commerce’s scope ............................................................................................................... I‐8 Tariff treatment ................................................................................................................. I‐10 The product ........................................................................................................................... I‐11 Description and applications ............................................................................................. I‐11 Manufacturing processes................................................................................................... I‐17 Domestic like product issues ................................................................................................. I‐22 Part II: Conditions of competition in the U.S. market ............................................................ II‐1 U.S. market characteristics ..................................................................................................... II‐1 Channels of distribution ......................................................................................................... II‐1 Geographic distribution .......................................................................................................... II‐3 Supply and demand considerations ........................................................................................ II‐3 U.S. supply .......................................................................................................................... II‐3 U.S. demand ....................................................................................................................... II‐7 i CONTENTS Page Part II: Conditions of competition in the U.S. market‐‐Continued Substitutability issues ............................................................................................................. II‐9 Lead times .......................................................................................................................... II‐9 Factors affecting purchasing decisions ............................................................................... II‐9 Comparison of U.S.‐produced and imported PVLT tires ................................................... II‐10 Part III: U.S. producers’ production, shipments, and employment ....................................... III‐1 U.S. producers ....................................................................................................................... III‐1 U.S. production, capacity, and capacity utilization ................................................................ III‐9 Alternative products ........................................................................................................ III‐12 U.S. producers’ U.S. shipments and exports ........................................................................ III‐13 U.S. producers’ inventories ................................................................................................. III‐15 U.S. producers’ imports and purchases ............................................................................... III‐15 U.S. employment, wages, and productivity ......................................................................... III‐24 Part IV: U.S. imports, apparent U.S. consumption, and market shares ................................ IV‐1 U.S. importers....................................................................................................................... IV‐1 U.S. imports .......................................................................................................................... IV‐4 Negligibility ........................................................................................................................... IV‐9 Cumulation considerations ................................................................................................. IV‐10 Fungibility ....................................................................................................................... IV‐11 Geographical markets ..................................................................................................... IV‐12 Presence in the market ................................................................................................... IV‐13 Apparent U.S. consumption ............................................................................................... IV‐16 U.S. market shares .............................................................................................................. IV‐17 ii CONTENTS Page Part V: Pricing data ............................................................................................................... V‐1 Factors affecting prices .......................................................................................................... V‐1 Raw material costs ............................................................................................................. V‐1 Transportation costs to the U.S. market ............................................................................ V‐1 U.S. inland transportation costs ......................................................................................... V‐1 Pricing practices .................................................................................................................... V‐2 Pricing methods ................................................................................................................. V‐2 Sales terms and discounts ................................................................................................. V‐3 Price data .............................................................................................................................. V‐4 Import purchase cost data ................................................................................................... V‐13 Price trends ...................................................................................................................... V‐23 Import purchase cost trends ............................................................................................ V‐26 Price comparisons ............................................................................................................ V‐27 Purchase cost comparisons .............................................................................................. V‐30 Lost sales and lost revenue .................................................................................................. V‐31 Part VI: Financial experience of U.S. producers .................................................................... VI‐1 Background .........................................................................................................................

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