Strontium Chromate from Austria and France Investigation Nos. 731-TA-1422 and 731-TA-1423 (Final) Publication 4992 November 2019 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS David S. Johanson, Chairman Rhonda K. Schmidtlein Jason E. Kearns Randolph J. Stayin Amy A. Karpel Catherine DeFilippo Director of Operations Staff assigned Christopher S. Robinson, Investigator Samuel Goodman, Industry Analyst Carlos Payan, Economist Jennifer Brinkhaus, Accountant Maya Alexander, Statistician Henry Smith, 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 Strontium Chromate from Austria and France Investigation Nos. 731-TA-1422 and 731-TA-1423 (Final) Publication 4992 November 2019 CONTENTS Page Determinations ............................................................................................................................... 1 Views of the Commission ............................................................................................................... 3 Part I: Introduction .............................................................................................................. I-1 Background ................................................................................................................................ I-1 Statutory criteria ....................................................................................................................... I-2 Organization of report ............................................................................................................... I-3 Market summary ....................................................................................................................... I-4 Summary data and data sources ............................................................................................... I-5 Previous and related investigations .......................................................................................... I-6 Nature and extent of sales at LTFV ........................................................................................... I-6 The subject merchandise .......................................................................................................... I-7 Commerce’s scope ................................................................................................................ I-7 Tariff treatment ..................................................................................................................... I-7 The product ............................................................................................................................... I-8 Description and applications ................................................................................................. I-8 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-4 Supply and demand considerations ......................................................................................... II-5 U.S. supply ............................................................................................................................ II-5 U.S. demand ......................................................................................................................... II-7 Substitutability issues ............................................................................................................. II-10 Lead times .......................................................................................................................... II-10 i CONTENTS Page Knowledge of country sources ........................................................................................... II-11 Factors affecting purchasing decisions............................................................................... II-12 Comparisons of domestic products, subject imports, and nonsubject imports ................ II-14 Comparison of U.S.-produced and imported strontium chromate ................................... II-16 Elasticity estimates ................................................................................................................. II-18 U.S. supply elasticity ........................................................................................................... II-19 U.S. demand elasticity ........................................................................................................ II-19 Substitution elasticity ......................................................................................................... II-19 Part III: U.S. producer’s production, shipments, and employment ...................................... III-1 U.S. producer ........................................................................................................................... III-1 U.S. production, capacity, and capacity utilization ................................................................. III-3 Alternative products ............................................................................................................ III-4 U.S. producer’s U.S. shipments and exports ........................................................................... III-5 U.S. producer’s U.S. shipments by product form, 2018 .......................................................... III-6 U.S. producer’s inventories ..................................................................................................... III-7 U.S. producer’s imports and purchases .................................................................................. III-8 U.S. employment, wages, and productivity ............................................................................ III-9 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-8 Fungibility ............................................................................................................................ IV-8 Geographical markets ....................................................................................................... IV-10 Presence in the market ..................................................................................................... IV-11 Apparent U.S. consumption .................................................................................................. IV-14 U.S. market shares ................................................................................................................ IV-15 ii 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-1 U.S. inland transportation costs ........................................................................................... V-2 Pricing practices ....................................................................................................................... V-2 Pricing methods .................................................................................................................... V-2 Sales terms and discounts .................................................................................................... V-3 Price leadership .................................................................................................................... V-3 Price data .................................................................................................................................. V-4 Import purchase costs .......................................................................................................