Quartz Surface Products from India and Turkey Investigation Nos. 701-TA-624-625 and 731-TA-1450-1451 (Preliminary) Publication 4919 July 2019 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 Julie Duffy, Investigator Lawrence Jones, Investigator Gregory LaRocca, Industry Analyst Aimee Larsen, Economist Natalia King, Economist Emily Kim, Accountant Cynthia Payne, Statistician David Goldfine, 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 Quartz Surface Products from India and Turkey Investigation Nos. 701-TA-624-625 and 731-TA-1450-1451 (Preliminary) Publication 4919 July 2019 CONTENTS Page Determinations ..................................................................................................................... 1 Views of the Commission ....................................................................................................... 3 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 alleged subsidies and sales at LTFV ........................................................ I-6 Alleged subsidies ................................................................................................................... I-6 Alleged sales at LTFV ............................................................................................................. I-9 Commerce’s scope ................................................................................................................ I-9 Tariff treatment ................................................................................................................... I-10 The product ............................................................................................................................. I-11 Description and applications ............................................................................................... I-11 Manufacturing processes .................................................................................................... I-13 Domestic like product issues ................................................................................................... I-17 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-3 U.S. supply ............................................................................................................................ II-3 U.S. demand ......................................................................................................................... II-5 Substitutability issues ............................................................................................................... II-9 i CONTENTS Page Part II: Conditions of competition in the U.S. market........................................................... II-1 Lead times ............................................................................................................................ II-9 Factors affecting purchasing decisions............................................................................... II-10 Comparison of U.S.-produced and imported quartz surface products .............................. II-10 Part III: U.S. producers’ production, shipments, and employment ...................................... III-1 U.S. producers ......................................................................................................................... III-1 U.S. production, capacity, and capacity utilization ................................................................. III-5 Alternative products ............................................................................................................ III-6 U.S. producers’ U.S. shipments and exports ........................................................................... III-6 U.S. producers’ inventories ..................................................................................................... III-7 U.S. producers’ imports and purchases .................................................................................. III-8 U.S. employment, wages, and productivity ............................................................................ III-8 Part IV: U.S. imports, apparent U.S. consumption, and market shares ............................... IV-1 U.S. importers.......................................................................................................................... IV-1 U.S. imports ............................................................................................................................. IV-4 Negligibility .............................................................................................................................. IV-8 Cumulation considerations ..................................................................................................... IV-9 Fungibility ............................................................................................................................ IV-9 Geographical markets ....................................................................................................... IV-11 Presence in the market ..................................................................................................... IV-12 Apparent U.S. consumption .................................................................................................. IV-16 U.S. market shares ................................................................................................................ IV-16 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-1 Pricing practices ....................................................................................................................... V-1 ii CONTENTS Page Part V: Pricing data ............................................................................................................. V-1 Pricing methods .................................................................................................................... V-1 Sales terms and discounts .................................................................................................... V-2 Price data .................................................................................................................................. V-3 Price trends ........................................................................................................................... V-8 Price comparisons .............................................................................................................. V-10 Lost sales and lost revenue .................................................................................................... V-11 Part VI: Financial experience of U.S. producers .................................................................. VI-1 Background .............................................................................................................................. VI-1 Operations on quartz surface products .................................................................................