Glass Containers from China Investigation Nos. 701-TA-630 and 731-TA-1462 (Preliminary) Publication 4996 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 Staffass igned Christopher W. Robinson, Investigator Julie Duffy, Investigator Gregory LaRocca, IndustryAnalyst Craig Thomsen, Economist JenniferBrinkhaus, Accountant Aaron Woodward, Statistician Brian Soiset, 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 Glass Containers from China Investigation Nos. 701-TA-630 and 731-TA-1462 (Preliminary) Publication 4996 November 2019 CONTENTS Page Determinations ............................................................................................................................... 1 Views of the Commission ............................................................................................................... 3 Introduction .............................................................................................................. I-1 Background ................................................................................................................................ I-1 Statutory criteria ....................................................................................................................... I-1 Organization of report ............................................................................................................... I-3 Market summary ....................................................................................................................... I-3 Summary data and data sources ............................................................................................... I-4 Previous and related investigations .......................................................................................... I-4 Nature and extent of alleged subsidies and sales at LTFV ........................................................ I-5 Alleged subsidies ................................................................................................................... I-5 Alleged sales at LTFV ............................................................................................................. I-6 The subject merchandise .......................................................................................................... I-6 Commerce’s scope ................................................................................................................ I-6 Tariff treatment ..................................................................................................................... I-7 The product ............................................................................................................................... I-7 Description and applications ................................................................................................. I-7 Manufacturing processes ...................................................................................................... I-8 Domestic like product issues ................................................................................................... I-18 Part II: Conditions of competition in the U.S. market........................................................... II-1 U.S. market characteristics....................................................................................................... II-1 Channels of distribution ........................................................................................................... II-2 Geographic distribution ........................................................................................................... II-4 Supply and demand considerations ......................................................................................... II-5 U.S. supply ............................................................................................................................ II-5 U.S. demand ....................................................................................................................... II-10 Substitutability issues ............................................................................................................. II-16 Minimum order quantities ................................................................................................. II-16 Lead times .......................................................................................................................... II-17 i CONTENTS Page Factors affecting purchasing decisions............................................................................... II-18 Part II: Conditions of competition in the U.S. market........................................................... II-1 Comparison of U.S.-produced and imported glass containers .......................................... II-18 Part III: U.S. producers’ production, shipments, and employment ...................................... III-1 U.S. producers ......................................................................................................................... III-1 U.S. production, capacity, and capacity utilization ................................................................. III-4 Alternative products ............................................................................................................ III-6 U.S. producers’ U.S. shipments and exports ........................................................................... III-6 U.S. producers’ inventories ..................................................................................................... III-8 U.S. producers’ 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-10 Apparent U.S. consumption .................................................................................................. IV-11 U.S. market shares ................................................................................................................ IV-12 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-3 Pricing practices ....................................................................................................................... V-3 Pricing methods .................................................................................................................... V-3 Sales terms and discounts .................................................................................................... V-4 Price data .................................................................................................................................. V-5 Price trends ......................................................................................................................... V-14 Price comparisons .............................................................................................................. V-14 Lost sales and lost revenue .................................................................................................... V-15 ii CONTENTS Page Part VI: Financial experience of U.S. producers .................................................................. VI-1 Background .............................................................................................................................. VI-1 Operations on glass containers ............................................................................................... VI-2 Net sales .............................................................................................................................. VI-7 Cost of goods sold and gross profit or (loss) ....................................................................... VI-8 SG&A expenses and operating income or (loss) ................................................................. VI-9 All other expenses and net income or (loss) ....................................................................... VI-9 Capital expenditures and research