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1,1,1,2--Tetrafluoroethane (R-134A) from China

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1,1,1,2--Tetrafluoroethane (R-134A) from China 1,1,1,2--Tetrafluoroethane (R-134a) from China Investigation No. 731-TA-1313 (Final) Publication 4679 April 2017 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Rhonda K. Schmidtlein, Chairman David S. Johanson, Vice Chairman Irving A. Williamson Meredith M. Broadbent F. Scott Kieff Catherine DeFilippo Director of Operations Staff assigned Joanna Lo, Investigator Jeffrey Clark, Industry Analyst Cindy Cohen, Economist David Boyland, Accountant Onslow Hall, Statistician Carolyn Holmes, Statistical Assistant Michael Haldenstein, Attorney Douglas 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 1,1,1,2--Tetrafluoroethane (R-134a) from China Investigation No. 731-TA-1313 (Final) Publication 4679 April 2017 CONTENTS Page Determination ......................................................................................................................... 1 Views of the Commission ......................................................................................................... 3 Separate views of Chairman Rhonda K. Schmidtlein and Commissioner Irving A. Williamson regarding critical circumstances ......................................................................................... 27 Part I: Introduction ................................................................................................................ I‐1 Background ................................................................................................................................ I‐1 Statutory criteria and organization of the report ..................................................................... I‐2 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‐5 Nature and extent of sales at LTFV ........................................................................................... I‐7 The subject merchandise .......................................................................................................... I‐8 Commerce’s scope ................................................................................................................ I‐8 Tariff treatment ..................................................................................................................... I‐8 The product ............................................................................................................................... I‐9 Manufacturing processes ...................................................................................................... I‐9 Description and applications ............................................................................................... I‐11 The regulatory history of automotive refrigerants ............................................................. I‐19 Domestic like product issues ................................................................................................... I‐23 i CONTENTS Page Part II: Conditions of competition in the U.S. market ............................................................ II‐1 U.S. market characteristics ....................................................................................................... II‐1 U.S. purchasers ......................................................................................................................... II‐2 Channels of distribution ........................................................................................................... II‐3 Geographic distribution ........................................................................................................... II‐3 Supply and demand considerations ......................................................................................... II‐3 U.S. supply ............................................................................................................................ II‐3 U.S. demand ......................................................................................................................... II‐9 Substitutability issues ............................................................................................................. II‐13 Lead times .......................................................................................................................... II‐13 Knowledge of country sources ........................................................................................... II‐14 Factors affecting purchasing decisions............................................................................... II‐14 Comparisons of domestic products, subject imports, and nonsubject imports ................ II‐18 Comparison of U.S.‐produced and imported R‐134a ......................................................... II‐18 Elasticity estimates ................................................................................................................. II‐20 U.S. supply elasticity ........................................................................................................... II‐20 U.S. demand elasticity ........................................................................................................ II‐21 Substitution elasticity ......................................................................................................... II‐21 Part III: U.S. producers’ production, shipments, and employment ....................................... III‐1 U.S. producers ......................................................................................................................... III‐1 U.S. production, capacity, and capacity utilization ................................................................. III‐2 U.S. producers’ U.S. shipments and exports ........................................................................... III‐3 U.S. producers’ inventories ..................................................................................................... III‐5 U.S. producers’ imports ........................................................................................................... III‐5 U.S. employment, wages, and productivity ............................................................................ III‐6 ii CONTENTS Page Part IV: U.S. imports, apparent U.S. consumption, and market shares ................................ IV‐1 U.S. importers.......................................................................................................................... IV‐1 U.S. imports from China .......................................................................................................... IV‐3 U.S. imports from nonsubject countries ................................................................................. IV‐5 Critical circumstances .............................................................................................................. IV‐7 Negligibility .............................................................................................................................. IV‐8 Apparent U.S. consumption and market shares ..................................................................... IV‐9 U.S. producers and importers’ U.S. shipments by application ............................................. IV‐11 Part V: Pricing data ............................................................................................................... V‐1 Factors affecting prices ............................................................................................................ V‐1 Raw material costs ............................................................................................................... V‐1 U.S. inland transportation costs ........................................................................................... V‐1 Pricing practices ....................................................................................................................... V‐1 Pricing methods .................................................................................................................... V‐1 Sales terms and discounts .................................................................................................... V‐3 Price leadership .................................................................................................................... V‐4 Price data .................................................................................................................................. V‐4 Price trends ........................................................................................................................... V‐7 Price comparisons ................................................................................................................ V‐8 Direct imports/purchase costs ............................................................................................
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