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Certain Lightweight Thermal Paper from China, Germany, and Korea

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Certain Lightweight Thermal Paper from China, Germany, and Korea Certain Lightweight Thermal Paper From China, Germany, and Korea Investigation Nos. 701-TA-451 and 731-TA-1126-1128 (Preliminary) Publication 3964 November 2007 Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Daniel R. Pearson, Chairman Shara L. Aranoff, Vice Chairman Deanna Tanner Okun Charlotte R. Lane Irving A. Williamson Dean A. Pinkert Robert A. Rogowsky Director of Operations Staff assigned Christopher Cassise, Investigator Fred Forstall, Industry Analyst Nancy Bryan, Economist Mary Klir, Accountant Marc Bernstein, Attorney Lemuel Shields, Statistician Diane Mazur, Supervisor 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 Certain Lightweight Thermal Paper From China, Germany, and Korea Investigation Nos. 701-TA-451 and 731-TA-1126-1128 (Preliminary) Publication 3964 November 2007 C O N T E N T S Page Determinations ................................................................. 1 Views of the Commission ......................................................... 3 Seperate views of Commissioner Charlotte R. Lane ................................... 31 Seperate views of Commissioner Irving A. Williamson regarding threat of material injury with respect to Germany ........................................................... 37 Seperate views of Commissioner Dean A. Pinkert on reasonable indications of material injury by reason of subject imports from Germany ................................ 41 Dissenting views of Chairman Daniel R. Pearson, Vice Chairman Shara L. Aranoff, and Commissioner Deanna Tanner Okun concerning Germany ......................... 47 Part I: Introduction ............................................................ I-1 Background .................................................................. I-1 Organization of report.......................................................... I-1 U.S. market summary.......................................................... I-3 Summary data and data sources .................................................. I-3 Previous and related investigations................................................ I-3 Nature and extent of alleged sales at LTFV ......................................... I-3 Nature of alleged countervailable subsidies ......................................... I-4 The subject product ............................................................ I-5 Commerce’s scope.......................................................... I-5 Tariff treatment ............................................................ I-6 The domestic like product ....................................................... I-7 Physical characteristics and uses............................................... I-7 Manufacturing facilities and manufacturing processes .............................. I-8 Intermediate products .......................................................... I-11 Domestic like product issues .................................................... I-12 Part II: Conditions of competition in the U.S. market ................................ II-1 U.S. market segments/channels of distribution....................................... II-1 Supply and demand considerations ................................................ II-2 U.S. supply ............................................................... II-2 U.S. demand .............................................................. II-5 Substitute products ......................................................... II-5 Substitutability issues .......................................................... II-6 Comparison of domestic product and subject imports ............................... II-6 Other country comparisons ................................................... II-9 i C O N T E N T S Page Part III: U.S. producers’ production, shipments, and employment ...................... III-1 U.S. producers ............................................................... III-1 U.S. capacity, production, and capacity utilization ................................... III-3 U.S. coaters............................................................... III-3 U.S. converters ............................................................ III-4 U.S. coaters’ and converters’ U.S. shipments and export shipments ...................... III-4 U.S. coaters............................................................... III-4 U.S. converters ............................................................ III-5 U.S. producers’ imports and purchases of imports .................................... III-5 U.S. producers’ inventories ..................................................... III-5 U.S. employment, wages, and productivity ......................................... III-6 Part IV: U.S. imports, apparent consumption, and market shares ...................... IV-1 U.S. importers................................................................ IV-1 U.S. imports ................................................................. IV-3 Cumulation considerations...................................................... IV-3 Negligibility ................................................................. IV-4 Apparent U.S. consumption and market shares ...................................... IV-4 Ratio of imports to U.S. production ............................................... IV-5 Part V: Pricing and related information ............................................ 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 Exchange rates............................................................. V-2 Pricing practices.............................................................. V-4 Pricing methods ............................................................ V-4 Sales terms and discounts .................................................... V-4 Price data ................................................................... V-5 Price trends ............................................................... V-6 Price comparisons .......................................................... V-10 Lost sales and lost revenues ..................................................... V-10 Part VI: Financial condition of U.S. producers ...................................... VI-1 Background .................................................................. VI-1 Operations on certain LW thermal paper ........................................... VI-1 Value added ................................................................. VI-4 Capital expenditures and research and development expenses ........................... VI-4 Assets and return on investment .................................................. VI-5 Capital and investment......................................................... VI-5 ii C O N T E N T S Page Part VII: Threat considerations .................................................. VII-1 The industry in China .......................................................... VII-2 The industry in Germany ....................................................... VII-3 The industry in Korea .......................................................... VII-4 U.S. importers’ inventories...................................................... VII-5 U.S. importers’ current orders ................................................... VII-5 Antidumping and countervailing duty orders in third-country markets .................... VII-5 Information of nonsubject sources ................................................ VII-5 “Bratsk” considerations...................................................... VII-5 Global market ............................................................. VII-6 Appendixes A. Federal Register notices....................................................... A-1 B. List of conference witnesses ................................................... B-1 C. Summary data............................................................... C-1 D. Pricing data presented on an estimated delivered basis ............................... D-1 E. Alleged effects of subject imports on U.S. producers’ existing development and production efforts, growth, investment, and ability to raise capital ...................... E-1 Note.--Information that would reveal confidential operations of individual concerns may not be published and therefore has been deleted from this report. Such deletions are indicated by asterisks. iii UNITED STATES INTERNATIONAL TRADE COMMISSION Investigation Nos. 701-TA-451 and 731-TA-1126-1128 (Preliminary) CERTAIN LIGHTWEIGHT THERMAL PAPER FROM CHINA, GERMANY, AND KOREA DETERMINATIONS On the basis of the record1 developed in the subject investigations, the United States International Trade Commission (Commission) determines, pursuant to sections 703(a) and 733(a) of the Tariff Act of 1930 (19 U.S.C. §§ 1671b(a) and 1673b(a)) (the Act), that there is a reasonable indication that an industry in the United States is threatened with material injury by reason of imports from China of certain lightweight thermal paper,2 provided for in subheadings 4811.90.80 and 4811.90.90 of the Harmonized Tariff Schedule of the United States, that are alleged to be
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