Supercalendered Paper from Canada
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Supercalendered Paper from Canada Investigation No. 701-TA-530 (Final) Publication 4583 December 2015 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Meredith M. Broadbent, Chairman Dean A. Pinkert, Vice Chairman Irving A. Williamson David S. Johanson F. Scott Kieff Rhonda K. Schmidtlein Catherine DeFilippo Director of Operations Staff assigned Christopher Cassise, Senior Investigator Vincent Honnold, Industry Analyst Craig Thomsen, Economist David Boyland, Accountant Russell Duncan, Statistician Michael Haldenstein, Attorney 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 Supercalendered Paper from Canada Investigation No. 701-TA-530 (Final) Publication 4583 December 2015 CONTENTS Page Determination ................................................................................................................................. 1 Views of the Commission ............................................................................................................... 3 Part I: Introduction ................................................................................................................ I‐1 Background ................................................................................................................................ I‐1 Statutory criteria and organization of the report ..................................................................... I‐1 Statutory criteria ................................................................................................................... I‐1 Organization of report ........................................................................................................... I‐3 Market summary ....................................................................................................................... I‐3 Summary data and data sources ............................................................................................... I‐3 Previous and related investigations .......................................................................................... I‐4 Nature and extent of subsidies ................................................................................................. I‐4 The subject merchandise .......................................................................................................... I‐4 Commerce’s scope ................................................................................................................ I‐4 Tariff treatment ..................................................................................................................... I‐5 The product ............................................................................................................................... I‐6 Description and applications ................................................................................................. I‐6 Manufacturing processes .................................................................................................... I‐11 Domestic like product issues ................................................................................................... I‐13 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‐2 Geographic distribution ........................................................................................................... II‐3 Supply and demand considerations ......................................................................................... II‐3 U.S. supply ............................................................................................................................ II‐3 U.S. demand ......................................................................................................................... II‐7 Substitutability issues ............................................................................................................. II‐14 Lead times .......................................................................................................................... II‐14 i CONTENTS Page Knowledge of country sources ........................................................................................... II‐14 Factors affecting purchasing decisions............................................................................... II‐15 Comparisons of domestic products, subject imports, and nonsubject imports ................ II‐19 Comparison of U.S.‐produced and imported SC paper ...................................................... II‐20 Elasticity estimates ................................................................................................................. II‐24 U.S. supply elasticity ........................................................................................................... II‐24 U.S. demand elasticity ........................................................................................................ II‐25 Substitution elasticity ......................................................................................................... II‐25 Part III: U.S. producers’ production, shipments, and employment ....................................... III‐1 U.S. producers ......................................................................................................................... III‐1 Madison Paper Industries, Inc. ............................................................................................ III‐2 Resolute FP US Inc. .............................................................................................................. III‐2 Verso Corp. .......................................................................................................................... III‐3 U.S. production, capacity, and capacity utilization ................................................................. III‐4 U.S. producers’ U.S. shipments and exports ........................................................................... III‐5 U.S. producers’ U.S. commercial shipments of SC paper by grade ..................................... III‐6 U.S. producers’ inventories ..................................................................................................... III‐6 U.S. producers’ imports and purchases .................................................................................. III‐7 U.S. employment, wages, and productivity ............................................................................ III‐8 Part IV: U.S. imports, apparent U.S. consumption, and market shares ................................ IV‐1 U.S. importers.......................................................................................................................... IV‐1 U.S. imports ............................................................................................................................. IV‐2 U.S. importers’ U.S. commercial shipments of SC paper by grade ..................................... IV‐3 Negligibility .............................................................................................................................. IV‐4 Apparent U.S. consumption and U.S. market shares .............................................................. IV‐5 Part V: Pricing data ............................................................................................................... V‐1 Factors affecting prices ............................................................................................................ V‐1 Raw material costs ............................................................................................................... V‐1 ii CONTENTS Page Transportation costs to the U.S. market .............................................................................. V‐1 U.S. inland transportation costs ........................................................................................... V‐2 Exchange rates ...................................................................................................................... V‐2 Pricing practices ....................................................................................................................... V‐3 Pricing methods .................................................................................................................... V‐3 Sales terms, discounts, and rebates ..................................................................................... V‐6 Price leadership .................................................................................................................... V‐7 Price data .................................................................................................................................. V‐7 Price trends ......................................................................................................................... V‐13 Price comparisons