Dioctyl Terephthalate (DOTP) from Korea Investigation No. 731-TA-1330 (Final) Publication 4713 August 2017 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Rhonda K. Schmidtlein, Chairman David S. Johanson, Vice Chairman Irving A. Williamson Meredith M. Broadbent Catherine DeFilippo Director of Operations Staff assigned Porscha Stiger, Investigator Brian Allen, Industry Analyst John Benedetto, Economist Emily Kim, Accountant Lita David-Harris, Statistician Darlene Smith, Statistical Assistant John Henderson, Attorney Elizabeth Haines, Supervisory Investigator Special assistance from Charles Yost, Accountant Elizabeth Nesbitt, Industry Analyst Philip Stone, Industry Analyst 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 Dioctyl Terephthalate (DOTP) from Korea Investigation No. 731-TA-1330 (Final) Publication 4713 August 2017 CONTENTS Page Determination ................................................................................................................................. 1 Views of the Commission ............................................................................................................... 3 Dissenting Views of Vice Chairman David S. Johanson ............................................................... 25 Part I: Introduction ................................................................................................................ I‐1 Background ................................................................................................................................ I‐1 Statutory criteria and organization of the report ..................................................................... I‐2 Statutory criteria ................................................................................................................... I‐2 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 sales at LTFV ........................................................................................... I‐4 Sales at LTFV .......................................................................................................................... I‐4 The subject merchandise .......................................................................................................... I‐5 Commerce’s scope ................................................................................................................ I‐5 Tariff treatment ..................................................................................................................... I‐6 The product ............................................................................................................................... I‐6 Description and applications ................................................................................................. I‐6 Manufacturing processes .................................................................................................... I‐10 Domestic like product issues ................................................................................................... I‐12 Physical characteristics and uses ......................................................................................... I‐12 Manufacturing facilities and production employees .......................................................... I‐13 Interchangeability ................................................................................................................ I‐14 Customer and producer perceptions .................................................................................. I‐14 Channels of distribution ...................................................................................................... I‐15 Price ..................................................................................................................................... I‐15 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‐1 Geographic distribution ........................................................................................................... II‐2 Supply and demand considerations ......................................................................................... II‐2 U.S. supply ............................................................................................................................ II‐2 U.S. demand ......................................................................................................................... II‐6 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‐14 Comparison of U.S.‐produced and imported product ....................................................... II‐15 Elasticity estimates ................................................................................................................. II‐17 U.S. supply elasticity ........................................................................................................... II‐17 U.S. demand elasticity ........................................................................................................ II‐17 Substitution elasticity ......................................................................................................... II‐18 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‐2 Alternative products ............................................................................................................ III‐4 U.S. producer’s U.S. shipments and exports ........................................................................... III‐4 U.S. producer’s inventories ..................................................................................................... III‐4 U.S. producer’s imports and purchases .................................................................................. III‐5 U.S. employment, wages, and productivity ............................................................................ III‐5 ii CONTENTS Page Part IV: U.S. imports, apparent U.S. consumption, and market shares ................................ IV‐1 U.S. importers.......................................................................................................................... IV‐1 U.S. imports ............................................................................................................................. IV‐3 Negligibility .............................................................................................................................. IV‐4 Apparent U.S. consumption and U.S. market shares .............................................................. IV‐4 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‐3 Pricing methods .................................................................................................................... V‐3 Sales terms and discounts ...................................................................................................