Polyethylene Terephthalate (PET) Sheet from Korea and Oman Investigation Nos. 731-TA-1455 and 731-TA-1457 (Final) Publication 5111 September 2020 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Jason E. Kearns, Chair Randolph J. Stayin, Vice Chair David S. Johanson Rhonda K. Schmidtlein Amy A. Karpel Staff assigned Kristina Lara, Investigator Jennifer Catalano, Industry Analyst Amelia Preece, Economist Emily Kim, Accountant Mara Alexander, Statistician Jason Miller, Attorney Elizabeth Haines, 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 (PET) Sheet from Korea and Oman Investigation Nos. 731-TA-1455 and 731-TA-1457 (Final) Publication 5111 September 2020 CONTENTS Page Determinations ............................................................................................................................. 1 Views of the Commission ............................................................................................................. 3 Introduction ................................................................................................................ I‐1 Background ............................................................................................................................. I‐1 Statutory criteria ..................................................................................................................... I‐2 Organization of report ............................................................................................................. I‐4 Market summary ..................................................................................................................... I‐4 Summary data and data sources ............................................................................................. I‐5 Previous and related investigations ......................................................................................... I‐5 Nature and extent of sales at LTFV .......................................................................................... I‐5 Sales at LTFV ........................................................................................................................ I‐5 The subject merchandise ......................................................................................................... I‐7 Commerce’s scope ............................................................................................................... I‐7 Tariff treatment ................................................................................................................... I‐7 Section 301 tariff treatment ................................................................................................ I‐8 The product ............................................................................................................................. I‐8 Description and applications ............................................................................................... I‐8 Manufacturing processes................................................................................................... I‐10 Domestic like product issues ................................................................................................. I‐14 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‐1 Channels of distribution ......................................................................................................... II‐2 Geographic distribution .......................................................................................................... II‐3 Supply and demand considerations ........................................................................................ II‐4 U.S. supply .......................................................................................................................... II‐4 U.S. demand ....................................................................................................................... II‐7 Substitutability issues ........................................................................................................... II‐11 Lead times ........................................................................................................................ II‐11 Knowledge of country sources .......................................................................................... II‐11 Factors affecting purchasing decisions ............................................................................. II‐12 Comparisons of domestic products, subject imports, and nonsubject imports ................ II‐17 Comparison of U.S.‐produced and imported PET sheet .................................................... II‐21 Elasticity estimates ............................................................................................................... II‐23 U.S. supply elasticity ......................................................................................................... II‐23 U.S. demand elasticity ...................................................................................................... II‐23 Substitution elasticity ....................................................................................................... II‐24 ii CONTENTS Page Part III: U.S. producers’ production, shipments, and employment ....................................... III‐1 U.S. producers ....................................................................................................................... III‐1 U.S. production, capacity, and capacity utilization ................................................................ III‐7 Alternative products ........................................................................................................ III‐13 U.S. producers’ U.S. shipments and exports ........................................................................ III‐14 U.S. producers’ inventories ................................................................................................. III‐16 U.S. producers’ imports and purchases ............................................................................... III‐17 U.S. employment, wages, and productivity ......................................................................... III‐19 Captive consumption ........................................................................................................... III‐20 Transfers and sales .......................................................................................................... III‐21 First statutory criterion in captive consumption .............................................................. III‐21 Second statutory criterion in captive consumption ......................................................... III‐21 Part IV: U.S. imports, apparent U.S. consumption, and market shares ................................ IV‐1 U.S. importers....................................................................................................................... IV‐1 U.S. imports .......................................................................................................................... IV‐2 Negligibility ........................................................................................................................... IV‐6 Cumulation considerations ................................................................................................... IV‐7 Fungibility ......................................................................................................................... IV‐8 Geographical markets ..................................................................................................... IV‐10 Presence in the market ................................................................................................... IV‐12 Apparent U.S. consumption and U.S. market shares for total market ................................ IV‐15 Apparent U.S. consumption and U.S. market shares for merchant market ........................ IV‐19 iii CONTENTS Page Part V: Pricing data ............................................................................................................... V‐1 Factors affecting prices .......................................................................................................... V‐1 Raw material costs ............................................................................................................. V‐1 Transportation costs to the U.S. market ............................................................................ V‐2 U.S. inland transportation costs ......................................................................................... V‐2 Pricing practices .................................................................................................................... V‐2 Pricing methods ................................................................................................................. V‐2 Sales terms