Polyethylene Terephthalate Film, Sheet,And Strip from Brazil, China
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Polyethylene Terephthalate Film, Sheet, and Strip from Brazil, China, Thailand, and the United Arab Emirates Investigation Nos. 731-TA-1131-1134 (Final) Publication 4040 October 2008 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Shara L. Aranoff, Chairman Daniel R. Pearson, Vice Chairman Deanna Tanner Okun Charlotte R. Lane Irving A. Williamson Dean A. Pinkert Robert A. Rogowsky Director of Operations Staff assigned Cynthia Trainor, Investigator Raymond Cantrell, Industry Analyst Ioana Mic, Economist Charles Yost, Accountant Rhonda Hughes, Attorney Lemuel Shields, Statistician James McClure, 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 Polyethylene Terephthalate Film, Sheet, and Strip from Brazil, China, Thailand, and the United Arab Emirates Investigation Nos. 731-TA-1131-1134 (Final) Publication 4040 October 2008 CONTENTS Page Determinations.................................................................. 1 Views of the Commission ......................................................... 3 Separate views of Commissioner Charlotte R. Lane..................................... 39 Part I: Introduction ............................................................ I-1 Background .................................................................. I-1 Statutory criteria and organization of the report...................................... I-1 Statutory criteria ........................................................... I-1 Organization of the report.................................................... I-2 U.S. market summary.......................................................... I-2 Summary data................................................................ I-3 Previous Commission investigations .............................................. I-3 The subject merchandise........................................................ I-5 Commerce’s scope.......................................................... I-5 U.S. tariff treatment......................................................... I-5 Nature and extent of sales at LTFV ............................................... I-6 The product .................................................................. I-7 Physical characteristics and uses............................................... I-8 Manufacturing facilities and production employees ................................ I-10 Interchangeability and customer and producer perceptions .......................... I-12 Channels of distribution...................................................... I-13 Price ................................................................... I-13 Domestic like product and the domestic industry ..................................... I-13 Part II: Conditions of competition in the U.S. market ................................ II-1 U.S. market conditions and characteristics.......................................... II-1 Channels of distribution........................................................ II-2 Supply and demand considerations ................................................ II-4 U.S. supply ............................................................... II-4 U.S. demand .............................................................. II-6 Substitutability issues .......................................................... II-8 Factors affecting purchasing decisions .......................................... II-8 Comparisons of domestic products and subject imports ............................. II-10 Elasticity estimates............................................................ II-15 U.S. supply elasticity ........................................................ II-15 U.S. demand elasticity....................................................... II-15 Substitution elasticity ....................................................... II-15 Part III: U.S. producers’ production, shipments, and employment ...................... III-1 U.S. producers ............................................................... III-1 U.S. producers’ capacity, production, and capacity utilization .......................... III-2 U.S. producers’ U.S. shipments and export shipments ................................. III-2 Captive consumption .......................................................... III-3 U.S. producers’ imports and purchases ............................................. III-4 U.S. producers’ inventories ..................................................... III-6 U.S. employment, wages, and productivity ......................................... III-6 i CONTENTS–Continued Page Part IV: U.S. imports, apparent consumption, and market shares ..................... IV-1 U.S. importers............................................................... IV-1 U.S. imports ................................................................ IV-1 Negligibility ................................................................ IV-3 Apparent U.S. consumption .................................................... IV-4 U.S. market shares ........................................................... IV-5 Ratio of subject imports to U.S. production ........................................ IV-5 Cumulation considerations..................................................... IV-6 Geographical markets ...................................................... IV-6 Simultaneous presence in the market .......................................... IV-8 Part V: Pricing and related information ........................................... V-1 Factors affecting prices........................................................ V-1 Raw materials ............................................................ V-1 Transportation costs to the U.S. market......................................... V-2 U.S. inland transportation costs............................................... V-2 Exchange rates............................................................ V-2 Pricing practices............................................................. V-4 Pricing methods ........................................................... V-4 Price data .................................................................. V-4 Price trends .............................................................. V-6 Price comparisons ......................................................... V-8 Lost sales and lost revenues .................................................... V-8 Part VI: Financial experience of U.S. producers .................................... VI-1 Background ................................................................. VI-1 Operations on PET film ....................................................... VI-1 Capital expenditures and research and development expenses .......................... VI-4 Assets and return on investment ................................................. VI-5 Capital and investment........................................................ VI-5 Actual negative effects ..................................................... VI-5 Anticipated negative effects ................................................. VI-6 Part VII: Threat considerations and Bratsk information ............................. VII-1 The industry in Brazil ......................................................... VII-1 The industry in China ......................................................... VII-1 The industry in Thailand ....................................................... VII-2 The industry in the UAE ....................................................... VII-2 U.S. importers’ inventories..................................................... VII-3 Imports subsequent to June 30, 2008 ............................................. VII-5 Antidumping duty orders in third-country markets .................................. VII-5 Information on nonsubject sources ............................................... VII-5 “Bratsk” considerations..................................................... VII-5 Nonsubject source information............................................... VII-5 ii CONTENTS–Continued Page Appendixes A. Federal Register notices....................................................... A-1 B. Calendar of public hearing..................................................... B-1 C. Summary data............................................................... C-1 D. Nonsubject countries’ pricing data ............................................... D-1 E. Pricing data of imports of Chinese PET film sold by traditional importers and by firms that are also U.S. producers....................................... E-1 f. Financial calculations for the domestic industry excluding possible related parties ......... F-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. 731-TA-1131-1134 (Final) POLYETHYLENE TEREPHTHALATE FILM, SHEET, AND STRIP FROM BRAZIL, CHINA, THAILAND, AND THE UNITED ARAB EMIRATES DETERMINATIONS On the basis of the record1 developed in the subject investigations, the United States International Trade Commission (Commission) determines, pursuant to section 735(b) of the Tariff Act of 1930 (19 U.S.C. § 1673d(b)) (the Act), that an industry in the