Stainless Steel Bar from Brazil, India, Japan, and Spain Investigation Nos. 731-TA-678, 679, 681, and 682 (Fourth Review) Publication 4820 September 2018 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS David S. Johanson, Chairman Irving A. Williamson Meredith M. Broadbent Rhonda K. Schmidtlein Jason E. Kearns Catherine DeFilippo Director of Operations Staff assigned Kristina Lara, Investigator Daniel Matthews, Industry Analyst James Horne, Economist Emily Kim, Accountant Onslow Hall, Statistician Carolyn Holmes, Statistical Assistant Brian Allen, 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 Stainless Steel Bar from Brazil, India, Japan, and Spain Investigation Nos. 731-TA-678, 679, 681, and 682 (Fourth Review) Publication 4820 September 2018 CONTENTS Page Determinations ............................................................................................................................... 1 Views of the Commission ............................................................................................................... 3 Part I: Introduction .............................................................................................................. I-1 Background ................................................................................................................................ I-1 The original investigations and subsequent reviews ................................................................ I-2 The original investigations ..................................................................................................... I-2 The first five-year reviews ..................................................................................................... I-3 The second five-year reviews ................................................................................................ I-3 The third five-year reviews .................................................................................................... I-4 Previous and related investigations .......................................................................................... I-4 Commission and Commerce investigations .......................................................................... I-4 Section 232 investigation (Commerce) ................................................................................. I-5 Section 337 investigation ...................................................................................................... I-9 Summary data ........................................................................................................................... I-9 Statutory criteria and organization of the report ................................................................... I-13 Statutory criteria ................................................................................................................. I-13 Organization of report ......................................................................................................... I-15 Commerce’s reviews ............................................................................................................... I-15 Administrative reviews ........................................................................................................ I-15 Company revocations .......................................................................................................... I-23 Changed circumstances reviews ......................................................................................... I-23 Scope inquiry reviews .......................................................................................................... I-24 Five-year reviews ................................................................................................................. I-25 The subject merchandise ........................................................................................................ I-26 Commerce’s scope .............................................................................................................. I-26 Tariff treatment ................................................................................................................... I-28 The product ............................................................................................................................. I-29 Description and applications ............................................................................................... I-29 i CONTENTS Page Manufacturing process ........................................................................................................ I-32 Domestic like product issues ................................................................................................... I-34 U.S. market participants .......................................................................................................... I-35 U.S. producers ..................................................................................................................... I-35 U.S. importers ...................................................................................................................... I-37 U.S. purchasers .................................................................................................................... I-40 Apparent U.S. consumption .................................................................................................... I-40 U.S. market shares .................................................................................................................. I-42 Part II: Conditions of competition in the U.S. market........................................................... II-1 U.S. market characteristics....................................................................................................... II-1 Channels of distribution ........................................................................................................... II-1 Geographic distribution ........................................................................................................... II-2 Supply and demand considerations ......................................................................................... II-2 U.S. supply ............................................................................................................................ II-2 U.S. demand ......................................................................................................................... II-8 Substitutability issues ............................................................................................................. II-12 Lead times .......................................................................................................................... II-13 Knowledge of country sources ........................................................................................... II-13 Factors affecting purchasing decisions............................................................................... II-14 Comparisons of domestic products, subject imports, and nonsubject imports ................ II-16 Comparison of U.S.-produced and imported stainless steel bar ....................................... II-20 Elasticity estimates ................................................................................................................. II-23 U.S. supply elasticity ........................................................................................................... II-23 U.S. demand elasticity ........................................................................................................ II-23 Substitution elasticity ......................................................................................................... II-24 Part III: Condition of the U.S. industry ................................................................................ III-1 Overview ................................................................................................................................. III-1 Changes experienced by the industry ................................................................................. III-7 ii CONTENTS Page Anticipated changes in operations ...................................................................................... III-7 Cold finishing operations ........................................................................................................ III-7 U.S. production, capacity, and capacity utilization ................................................................. III-8 Constraints on capacity ..................................................................................................... III-11 Alternative products .......................................................................................................... III-11 U.S. producers’ U.S. shipments and exports ......................................................................... III-12 U.S. producers’ U.S. shipments by product type .................................................................. III-13 U.S. producers’ inventories ................................................................................................... III-13 U.S. producers’ imports and purchases ...............................................................................