Thermal Paper from Germany, Japan, Korea, and Spain Investigation Nos. 731-TA-1546-1549 (Preliminary) Publication 5141 December 2020 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Jason E. Kearns, Chair Randolph J. Stayin, Vice Chair David S. Johanson Rhonda K. Schmidtlein Amy A. Karpel Catherine DeFilippo Director of Operations Staff assigned Ahdia Bavari, Investigator Robert Ireland, Industry Analyst Carlos Payan, Economist Zahra Bekkal, Accountant Charles Yost, Accountant Conor Hargrove, Statistician Courtney McNamara, Attorney Mary Beth Jones, 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 Thermal Paper from Germany, Japan, Korea, and Spain Investigation Nos. 731-TA-1546-1549 (Preliminary) Publication 5141 December 2020 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 sales at LTFV ............................................................................. I‐5 Alleged sales at LTFV ............................................................................................................ I‐5 The subject merchandise ......................................................................................................... I‐6 Commerce’s scope ............................................................................................................... I‐6 Tariff treatment ................................................................................................................... I‐6 The product ............................................................................................................................. I‐7 Description and applications ............................................................................................... I‐7 Manufacturing processes..................................................................................................... I‐8 Domestic like product issues ................................................................................................... I‐9 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‐3 Supply and demand considerations ........................................................................................ II‐3 U.S. supply .......................................................................................................................... II‐3 U.S. demand ....................................................................................................................... II‐7 Substitutability issues ............................................................................................................. II‐9 Lead times .......................................................................................................................... II‐9 Factors affecting purchasing decisions ............................................................................. II‐10 i CONTENTS Page Comparison of U.S.‐produced and imported thermal paper ............................................ 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‐7 Alternative products ........................................................................................................ III‐12 U.S. producers’ U.S. shipments and exports ........................................................................ III‐14 U.S. producers’ inventories ................................................................................................. III‐18 U.S. producers’ imports and purchases ............................................................................... III‐20 U.S. employment, wages, and productivity ......................................................................... III‐22 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‐11 Cumulation considerations ................................................................................................. IV‐12 Fungibility ....................................................................................................................... IV‐13 Geographical markets ..................................................................................................... IV‐16 Presence in the market ................................................................................................... IV‐17 Apparent U.S. consumption ............................................................................................... IV‐20 U.S. market shares .............................................................................................................. IV‐23 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‐2 Pricing methods ................................................................................................................. V‐2 Sales terms and discounts ................................................................................................. V‐3 Price data .............................................................................................................................. V‐4 ii CONTENTS Page Price trends ...................................................................................................................... V‐14 Price comparisons ............................................................................................................ V‐16 Lost sales and lost revenue .................................................................................................. V‐17 Part VI: Financial experience of U.S. producers .................................................................... VI‐1 Background .......................................................................................................................... VI‐1 Operations on thermal paper ............................................................................................... VI‐1 Net sales ......................................................................................................................... VI‐19 Cost of goods sold and gross profit or loss ..................................................................... VI‐20 Other expenses and net income or loss .......................................................................... VI‐25 Variance analysis ...........................................................................................................