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Rock Salt from Canada

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Rock Salt from Canada ROCK SALT FROM CANADA Determination of the Commission In Investigation No. 731-TA-239 (Flnal) Under the Tariff Act o.f 1930, Together With the Information Obtained In the Investigation USITC PUBLICATION 1798 JANUARY 1986 United States International Trade Commission I Washington, DC 20436 UNITED STATES INTERNATIONAL TRADE COMMISSION COMMISSIONERS Paula Stern, Chairwoman Susan W. Llebeler, Vice Chairman . Alfred E. Eckes Seeley G. Lodwick David B. Rohr Anne E. Brunsdale Staff Assigned Brian Walters, Investigator Cynthia Trainor, Commodity-Industry Analyst · John Ryan, Economist William Perry, Attorney Randi Field, Attorney Harvin Claywell, Accountant Robert Eninger, Supervisory Investigator Address' all communications to Kenneth R•. Mason, Secretary to the Commission United S~ates International Trade Commission Washington, DC 20436 C O·N TENTS Dete rmi nation---···--·····-····--·-----.. ·---·-··--···-.-----··-----------··--- ....··--------· .. ·-··- 1 Views of the Commission--·-···--·.:..-----------· 3 Information obtained in the investigation: Introduction-··-··········-----·--·--------·--­ A-1 The product: Description and uses: Description---·--· A-2 Uses-··-··--·-.. ·-·-···--···------··-·-..··-·-- A-2 Subst i tutes-·..'.--.. A-4 Manufacturing process-··--··-------·--·-------··.. ·-·· A-4 U.S. tariff treatment ------------------ A-4 Nature and extent of sales at LTFV-··- A-5 The domestic market-··-----,-.-- A-5 Apparent U.S. consumption-------·----··-·--· A-7 Channels of distribution-·--··---~-·---------------- A-8 U.S. producers-·--·········---;·-··: · A-8 U.S. importers -----·---------------...,.--,------ A-11 The Canadian industry-... -...·-··--·-···--------·-------- A-11 The question of material injury: U.S. production, capacity, and capacity utilization--· .A--13 U.S. producers' shipments A-..16 U.S. producers' inventories ~~22 Employment .. --------·-··-----··-·-------·-··--·- A-2 3 Financial experience of U.S. producers-- A-25 Overall establishment operations--··--·-··· -· .. ···-·--··-... ··- A-25 Rock salt operations within the petitioner's region---- - A-·25 Rock'. salt operations within the r.espondents' region A-27 International Salt Co.---··--- A-·29 Cargi 11, Inc.--···-···-·-·-··-·-···-····--·----·----.. -·---·· ---·---·····...... __ A-30 Morton Salt---.......... _______. .:___.________ A-30 Domtar Industries-------··-.. ···-··-------··--.. ----- ----·.... ·-- A-31 Investment in productive facilities--·· A-·31 .· Capital.expenditures·····--------·~'- A-31 Research and development expenses A-31 Capital and investment----·-····---··..:. .... _.. ___ A-32 Carey Salt Division------·······.. ·-·---.. A:--32 Domtar Industries, Inc.-·-··-··---·--·-----·----..,...--·--·---- A-32 Independent Salt· Co.---.. ------ - A-·32 International Salt Co.··----·-·--·---·----.. ------·--····-- A·-32 United Salt Corp.--·--·- ·-·----··- A-32 Carg i.11, Inc . --··-.. ·--·---··-··-·-.:......----·-.. ·-··-----·-··-·--·---~--...... - A-3 2 Mine netbac ks---............. -..:. ..... --"·--.. ·--------·--·---·--·-----..,---..:_____ A-·3 3 The question of the threat of material injury----.. ---··--·---··.. -·-·-..... ·- A-33 Consideration of the causal relationship between imports sold at LTFV and the all~ged injury: U.S. imports-·-··---··----------··---------- A-·-34 Market penetration·-·--·· .. ····-· .. -·.--................ _......... ____ ....;.._, ________ .. _, ____.. ___··-·-------· -- ...... __ A-3 9 Prices: Factors affecting p'rices-··-··':""· -----··-------·---- A--39 Competitive bids-·---.. ----·-·---·---···-·-··-·-·------··--- A-41 1 11 i no i s-··------·---··---·------------·--------' A-·-43 ii CONTENTS Information obtained in the investigation--Continued Consideration of the causal relationship between imports sold at LTFV and the alleged inj ury--Continued Prices--Continued Competitive bids·-Continued Indiana-·-·--·----- A-45 Michigan-----.. -------------·-------·-·-------- A-46 Minnesota-.. -·. A-46 New York-·-.... ---·-·---·---.-·- .. - .. -.-----.. -· A-47 Ohio-... -..... A-48 Pennsylvania--------·----- A-49 Wisconsin A-49 Transportation . A-51 Distribution network. A-51 Factors affecting transportation costs A-52 Transportation costs A-52 Exchange rates---.· A-53 Lost sales A-54 Appendix A. Commerce's Federal Register notice A-57 Appendix B. The Commission's Federal Register notice etc. A-63 Appendix C. Purchasers' statements A-69 Figure " The region'.as defined by the petitioner and by the respondents---·- A-6 Tables 1. Rock salt: Distributi9n of domestically produced salt in the United States, by end uses, 1984 A-3• 2. Rock salt: Ap~rent U.S. consumption, by regions, 1982-84, January-September 1984, and January-September 198 A-7 3. Names and locations of U.S. producers of rock salt A-9 4. Rock salt: Imports from Canada by U.S. producers, by firms, 1982-84, January-September 1984; and January~September 1985 A-11 5. Rock salt: Canadian producers, location, initial production, parent company, and 1984 production A-12 6. Rock salt: Canada's production, capacity, and capacity utiliza- .tion, by firms, 1982-84, January-September 198.4, and January- September 1985-- A-13 7. Rock salt: U.S .. production, by regions and by firms, 1982-94, January-September 1984, and January-September 1985 A-14 8. Rock salt: U.S. production. capacity, by regions and by firms, 1982-84, January-September 1984, and January-September 1985----- A·-15 9. Rock salt: Utilization of U.S. productive capacity, by regions and by firms, 1982~84, January-September 1994, and January- September 1985· A-16 iii CONTENTS Tab 1e s--.Cont i nued · Page 10. Rock salt: Domestic shipments of rock salt produced within and outside the pet.i tioner' s region, by destinations and by firms, 1982-84, January-September 1984, and January-September 1985 A-17 11. Rock salt: Domestic shipments of rock salt produced within and outside the respondents' region, by destinations and by firms, 1982-84, january-September 1984, and January-·September 1985 A-·19 12. Rock salt: Domestic shipments according to the petitioner's region, by destinations and by sources, ·1982-84, January-· September 1984, and January-September 1985-.. ·------- A-20 13. Rock salt: Domestic shipments according to the respondents' region, by destinations and by sources, 1982-84, January- September 1984, and January-September 1985-- A-21 14. Rock salt: Exports of U.S. produced merchandise, by regions. and by firms, 1982-84, January-September 1984, and January-· September 1985-----................ - ... ------·.. ·----·--.. ,,_ A-22 15. Rock salt: End-of-period inventories of U.S.-produced rock salt, by locations of the inventories and by firms, 19S1-84, January- September 1984, and January-September 1985 · A-22 16. Rock salt: Average number of production and related workers in U.S. establishments producing rock salt, by regions and by firms, 1982-84, January-September 1984, and January-September 1985--.... - A-23 17. Rock salt: Labor productivity of U.S. producers, by regions and by firms, 1982-84, January-September 1984, and January- September 1985--·---- A-24 18. Income-and-loss experience of 7 U.S. producers on the overall operations of their establishments within which rock salt is produced, accounting years 1982-84, and interim periods ended Sept. 30, 1984, and Sept. 30, 1985--·--·-· -- A-26 19. Income-and-loss experience of 4 U.S. produc~rs on their operations producing rock salt within the petitioner's region, accounting years 1982-84, and interim periods ended Sept. 30, 1984, and Se pt . 30, 19 85-·--·------ ------ A-2 7 20~ Income-and-loss experience of 7 U.S. producers on their operations producing rock salt within the respondents' region, accounting years 1982-84, and interim periods ended Sept. 30, 1984, and Sept. 30, 1985--------.. A-28 21. Income-and·-loss experience of International Salt Co. on its operations producing rock salt in the United States, by mine locations, 1982-84, and interim periods ended Sept. 30, 1984, and Sept. 30, 1985--------· A-30 22. Income-and-loss experience of Cargill, Inc., on its operations producing rock salt in the United States, by mine locations, 1982-84, and interim periods ended Sept. 30, 1984, and Sept. 30, 1985-.. -----.. -----'-·-·---·------·-·-------------------- A-.. 30 23. Income-and-loss experience of Morton Salt on its operations producing rock salt in the United States, by mine locations, 1982-84--·---·-.. -· .... ·--·---·.. ---·.. ---·---···-···--.. ·.. -·--........... ---·-·--·.. ·---.. ·------····--..---- A-30 24. Income-and-loss experience of Domtar Industries on its operations producing rock salt at Cote Blanche, LA, 1982-84, and interim periods ended Sept. 30, 1984, and Sept. 30, 1985-------·------.. -- A-31 iv CONTENTS Tables-Continued 25. Investment in productive facilities, capital expenditurers, and · research and development expenses related to the production of rock salt, 1982-84, and interim periods ended Sept. 30, 1984, and Sept. 30, 1995...i__ ........ - ... - .. --·--·---- .. -·.. --....··------------·--- A-·32 26. Rock .salt: Mine netback, the average per ton value of net· sales, less transportation and depot costs, of bulk rock salt for pavement ice control, by firms, 1982-84, January-September 1984, and January..:..september 1985--.. ·-·--·------·-----........ --.---.--------- A-33 27. Rock salt: End-of-period .inventories of rock salt imported from Canada, by firms, 1981-84, January-·September 1984, and January-September 19 8 5............. --...... ____ ,,, ______ ........ _... _ ........... -.. -.... _ .... _.-... ·-----·--·-----·__
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