Steel Concrete Reinforcing Bar from Belarus, China, Indonesia, Korea, Latvia, Moldova, Poland, and Ukraine
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Steel Concrete Reinforcing Bar From Belarus, China, Indonesia, Korea, Latvia, Moldova, Poland, and Ukraine Investigation Nos. 731-TA-873-875, 877-880, and 882 (Review) Publication 3933 July 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 Olympia Hand, Investigator Karl Tsuji, Industry Analyst Clark Workman, Economist David Boyland, Accountant Gracemary Roth-Roffy, Attorney Patrick Gallagher, Attorney Steven Hudgens, Statistician Gabriel Ellenberger, Research Assistant Douglas E. Corkran, 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 Steel Concrete Reinforcing Bar From Belarus, China, Indonesia, Korea, Latvia, Moldova, Poland, and Ukraine Investigation Nos. 731-TA-873-875, 877-880, and 882 (Review) Publication 3933 July 2007 CONTENTS Page Determination................................................................... 1 Views of the Commission ......................................................... 3 Separate and concurring views of Vice Chairman Shara L. Aranoff regarding Belarus, China, Indonesia, Moldova, and Ukraine ................................................. 43 Separate and dissenting views of Chairman Daniel R. Pearson and Commissioner Deanna Tanner Okun regarding cumulation ..................................................... 51 Separate and dissenting views of Chairman Daniel R. Pearson, Vice Chairman Shara L. Aranoff, and Commissioner Deanna Tanner Okun regarding Latvia and Poland .................... 65 Separate and dissenting views of Chairman Daniel R. Pearson and Commissioner Deanna Tanner Okun regarding Belarus, China, Indonesia, and Moldova .............................. 73 Separate views of Commissioner Deanna Tanner Okun regarding Ukraine ................... 85 Separate and dissenting views of Chairman Daniel R. Pearson regarding Ukraine .............. 91 Part I: Introduction and overview Background .................................................................. I-1 The original investigations ................................................... I-2 Summary data ............................................................. I-2 Previous and related Title VII investigations ........................................ I-11 Previous and related safeguard investigations ....................................... I-11 Statutory criteria and organization of the report...................................... I-13 Statutory criteria ........................................................... I-13 Organization of the report.................................................... I-14 Commerce’s reviews........................................................... I-15 Administrative reviews ...................................................... I-15 Results of expedited and full five-year reviews ................................... I-16 Distribution of Continued Dumping and Subsidy Offset Act funds ....................... I-16 The subject merchandise........................................................ I-19 Commerce’s scope.......................................................... I-19 U.S. tariff treatment......................................................... I-19 The domestic like product ....................................................... I-19 Description and applications .................................................. I-19 Manufacturing process ...................................................... I-22 Marketing ................................................................ I-23 Domestic like product issues .................................................... I-25 U.S. market participants........................................................ I-26 U.S. producers............................................................. I-26 U.S. importers............................................................. I-28 U.S. purchasers ............................................................ I-28 Apparent U.S. consumption and market shares ...................................... I-30 Regional industry considerations ................................................. I-30 i CONTENTS Page Part II: Conditions of competition in the U.S. market Market characteristics.......................................................... II-1 Supply and demand considerations ................................................ II-4 U.S. supply ............................................................... II-4 U.S. demand .............................................................. II-7 Substitutability issues .......................................................... II-10 Factors affecting purchasing decisions .......................................... II-11 Comparisons of domestic products, subject imports, and nonsubject imports ............ II-13 Elasticity estimates............................................................ II-18 U.S. supply elasticity ........................................................ II-19 U.S. demand elasticity....................................................... II-20 Substitution elasticity ....................................................... II-20 Economic modeling by domestic interested parties ................................ II-21 Part III: Condition of the U.S. industry Background .................................................................. III-1 U.S. producers’ capacity, production, and capacity utilization .......................... III-4 Changes during the period in existing operations.................................. III-4 Anticipated changes in existing operations....................................... III-5 Constraints on capacity...................................................... III-6 Alternative products ........................................................ III-6 U.S. producers’ domestic shipments, company transfers, and export shipments ............. III-8 Shipments by U.S. mills throughout the United States .............................. III-8 Shipments by U.S. mills within the specified region ................................ III-10 Shipments by U.S. mills outside the specified region ............................... III-12 U.S. producers’ inventories ..................................................... III-14 U.S. producers’ imports and purchases ............................................. III-15 U.S. producers’ employment, wages, and productivity ................................ III-16 Financial experience of U.S. producers ............................................ III-18 Background ............................................................... III-18 Rebar operations by U.S. mills throughout the United States ......................... III-18 Capital expenditures, assets, and return on investment of the U.S. industry .............. III-23 Rebar operations by U.S. mills within the specified region .......................... III-25 Capital expenditures, assets, and return on investment of U.S. producers of rebar within the specified region ...................................................... III-29 Rebar operations by U.S. mills outside the specified region .......................... III-33 Capital expenditures, assets, and return on investment of U.S. producers of rebar outside the specified region ...................................................... III-37 ii CONTENTS Page Part IV: U.S. imports and the foreign industries U.S. imports ................................................................. IV-1 Imports from Latvia......................................................... IV-5 Leading nonsubject sources of imports .......................................... IV-5 Recent trends in rebar imports ................................................... IV-9 Cumulation considerations...................................................... IV-9 Geographic markets......................................................... IV-11 Presence in the market ....................................................... IV-14 U.S. importers’ inventories...................................................... IV-14 The industry in Belarus ......................................................... IV-15 Overview................................................................. IV-15 Rebar operations ........................................................... IV-15 Alternative products ........................................................ IV-16 The industry in China .......................................................... IV-16 Overview................................................................. IV-16 Rebar operations ........................................................... IV-16 The industry in Indonesia ....................................................... IV-21 Overview................................................................. IV-21 Rebar operations ........................................................... IV-21 The industry in Korea .......................................................... IV-22 Overview................................................................. IV-22 Rebar operations ........................................................... IV-23 Alternative products ........................................................ IV-24 The industry in Latvia .........................................................