Download ball bearings, mounted or unmounted, and parts thereof from argentina, australia, brazil, canada PDF

Titleball bearings, mounted or unmounted, and parts thereof from argentina, australia, brazil, canada
LanguageEnglish
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Page 1

BALL BEARINGS, MOUNTED
OR UNMOUNTED~ AND PARTS
THEREOF, FROM ARGENTINA,
AUSTRIA, BRAZIL, CANADA,
HONG KONG, HUNGARY,
MEXICO, THE PEOPLE'S
REPUBLIC OF CHINA,
POLAND, THE REPUBLIC
OF KOREA, SPAIN,
TAIWAN, TURKEY AND
YUGOSLAVIA

Determination of the Commission in
Investigation No. 701-TA-307
(Preliminary) Under the Tariff Act of
1930, Together With the Information
Obtained in the Investigation

USITC PUBLICATION 2374

APRIL 1991

United States International Trade Commission
Washington, DC 20436

Determinations of the Commission in
Investigations Nos. 731-TA-498-511
(Preliminary) Under the Tariff Act
of 1930, Together With the
Information Obtained in the

Page 2

UNITED STATES INTERNATIONAL TRADE COMMISSION

COMMISSIONERS

Anne E. Brunsdale, Acting Chairman

Seeley G. Lodwick

David B. Rohr

Don E. Newquist

Charles Ervin,
Director of Operations

Staff assigned:

Jonathan Seiger, Investigator
Gerald Benedick, Economist

Laura Stonitsch, Commodity-Industry Analyst
John Ascienzo, Accountant/Financial Analyst

Marc Bernstein, Auomey

Rohen Eninger, Supervisory Investigator

Address all communications to
Kenneth R. Mason, Secretary to the Commission
United States International Trade Commission

Washington, DC 20436

Page 98

A-18

.... ,
.... ·.· .. , .

of such merchandise, and on shipments of ball bearing parts and components,
are ·based on those responses to Commission questionnaires. Data reported by
U.S. importers of the subject merchandise in response to importers'
questionnaires also make up 68 percent, by value, of 1988-90 official import
statistics for the HTS and TSUS items, as applicable, under which ball
bearings and parts thereof are provided for. As a result of these similar
response rates, import data used to estimate apparent consumption are also
based on responses to Commission questionnaires. 21

Apparent U.S. consumption of ball bearings and parts increased gradually
from 1988 to 1990, first rising substantially between 1988 and 1989, then more
slightly, by just 3 percent, between 1989 and 1990 (table 3). Imports rose at
a faster rate than overall consumption, but decreased in 1990; the value of
U.S. producers' U.S. shipments increased markedly during the period of
investigation. Subject imports more than doubled between 1988_ and 1989 and
then increased further in 1990; imports not subject to investigation also
increased in 1989 but fell back in 1990. 22 U.S. producers' share of an
expanding market decreased slightly overall, whereas importers' share
increased. The share of subject imports in apparent consumption rose from
2.8 percent in 1988 to 5.5 percent in 1990, while the share of nonsubject
imports dropped a percentage point.

Parties characterized the demand for bearings as a derived demand. 23
Thus, consumption of bearings is driven by the consumption of products that
incorporate bearings. The range of end-use applications for ball bearings is
apparently wide enough so as to make trends in the consumption of bearings
similar to the trend in overall economic activity. Parties in opposition to
the petition alleged that the small decline in apparent consumption during the
period of investigation evident from examination of public data sources
anticipated or reflected the current recession. 24

21 Consumption estimates are understated because not all producers and
importers responded to the Commission's questionnaire.

Estimates of apparent consumption of complete ball bearings, based on
questionnaire data, are presented in app. C. Trade and employment data on
complete ball bearings, and of ball bearings and parts, based on publicly
available data, are provided in app. D.

22 Nonsubject imports include, primarily, those subject to the 1988-89
antifriction bearings investigations.

23 See, e.g., transcript, p. 18.
24 Transcript, p. 105. Parties tended to characterize the current economic

downturn as short-lived, and thus expected bearing consumption to increase in
1991, and throughout the 1990s.

Page 99

A-19

Table 3
Ball bearings and parts thereof: U.S. producers' shipments, U.S. shipments of
imports, and apparent consumption, 1988-90

Item

U.S. producers' shipments ....
U.S. shipments of--

Subject imports ........... .
Nonsubject imports ........ .

Subtotal ................ .
Apparent consumption ........ .

U.S. producers' shipments ....
U.S. shipments of--

Subject imports ............
Nonsubject imports .........

Subtotal .................
Apparent consumption .........

1988

1,223,436

46,130
388.647
434.777

1. 658. 213

1989

Value (1.000 dollars)

1,321,529

102,381
452.125
554.506

1. 876 .035

1990

1,390,925

105,939
433.176
539 .115

1. 930. 040
As a share of the value of

apparent U.S. consumption (percent)

73.8 70.4 72.1

2.8 5.5 5.5
23.4 24.l 22.4
26.2 29.6 27.9

100.0 100.0 100.0

Note.--Because of rounding, shares may not add to the totals shown.

Source: Compiled from data submitted in response to questionnaires of the
U.S. International Trade Commission.

The market for ball bearings is a global one. It is dominated by several
multinational companies, among them SKF Sweden, FAG Kugelfischer Georg
Schaefer KGaA of Germany (FAG), NTN Toyo Bearing (NTN), Nippon Seiko, Ltd.
(NSK), and Koyo Seiko, Ltd. (Koyo) of Japan, and the petitioner, Torrington.
These companies have established production facilities worldwide and have, to
an extent, rationalized their production to meet the needs of each host-
country market. These companies have also standardized their production
technologies worldwide so that the quality of the bearings sourced in their
offshore facilities approximates the quality of their domestically-produced
bearings. 25 In addition to the activities of the multinationals, since World
War II several Eastern European countries have developed ball bearing
industries. 26 According to parties to the proceeding, the trend in worldwide
consumption of bearings has tended, in recent years, to mirror the trend in
U. S . consumption. 27

25 Transcript, p. 121.
26 Technology in these countries is somewhat less up-to-date, which is

reflected in the range of bearing types exported by these countries.
27 Field visit with ***

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Page 195

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B-39

APPENDIX L

QUARTERLY NET F.O.B. SELLING PRICE COMPARISONS BETWEEN
U.S.-PRODUCED AND IMPORTED BALL BEARINGS

........ :.··.~ : .

;.····· .:

•. · .

..
·.

Page 196

B-40

Table L-1
Margins of under/(over) selling between U.S.-produced and imported ball
bearings sold to OEMs and the total-period quantities sold, by specified
product, by foreign country, and for the margins by quarter, January 1988-
December 1990

* * * * * * *

Table L-2
Margins of under/(over) selling between U.S.-produced and imported ball
bearings sold to DISTRIBUTORS and the total-period quantities sold, by
specified product, by foreign country, and for the margins by quarter, January
1988-December 1990

* * * * * * *

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