Download Light-Walled Rectangular Pipe and Tube from China, Korea, Mexico, and Turkey PDF

TitleLight-Walled Rectangular Pipe and Tube from China, Korea, Mexico, and Turkey
LanguageEnglish
File Size1.4 MB
Total Pages148
Table of Contents
                            Part II: Conditions of competition in the U.S. market
		U.S. market characteristics
		Channels of distribution
		Geographic distribution
				Subject imports from China
				Subject imports from Korea
				Subject imports from Mexico
				Subject imports from Turkey
				Nonsubject imports
				New suppliers
			U.S. demand
				End uses
				Business cycles
				Apparent consumption
				Demand trends
				Substitute products
				Cost share
		Substitutability issues
			Lead times
			Knowledge of country sources
			Factors affecting purchasing decisions
				Importance of specified purchase factors
				Supplier certification
				Changes in purchasing patterns
				Importance of purchasing domestic product
			Comparisons of domestic products, subject imports, and nonsubject imports
			Comparison of U.S.-produced and imported LWR pipe and tube
		Elasticity estimates
			U.S. supply elasticity
			U.S. demand elasticity
			Substitution elasticity
	Part III:  Condition of the U.S. industry
		Overview
			Changes experienced by the industry
			Anticipated changes in operations
		U.S. production, capacity, and capacity utilization
			Constraints on capacity
			Alternative products
		U.S. producers’ U.S. shipments and exports
		U.S. producers’ inventories
		U.S. producers’ imports
		U.S. employment, wages, and productivity
	Part IV: U.S. imports and the foreign industries
		U.S. imports
			Overview
			Imports from subject and nonsubject countries
		U.S. importers’ imports subsequent to December 31, 2013
		Cumulation considerations
			Presence in the market
		The industry in China
			Operations on LWR pipe and tube
		The industry in Korea
			Operations on LWR pipe and tube
		The industry in Mexico
			Overview
			Operations on LWR pipe and tube
		The industry in Turkey
			Overview
			Operations on LWR pipe and tube
		Global market
			Global Exports
			Canada
			Italy
			Prices
			Foreign demand
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Document Text Contents
Page 1

U.S. International Trade Commission
Publication 4470 June 2013

Washington, DC 20436

Light-Walled Rectangular Pipe and Tube
from China, Korea, Mexico, and Turkey

Investigation Nos. 701-TA-449 and 731-TA-1118-1121 (Review)

Page 2

U.S. International Trade Commission

COMMISSIONERS


Irving A. Williamson, Chairman
Dean A. Pinkert

David S. Johanson
Meredith M. Broadbent

F. Scott Kieff
Rhonda K. Schmidtlein

Robert B. Koopman

Staff assigned

Address all communications to
Secretary to the Commission

United States International Trade Commission
Washington, DC 20436

Director of Operations

Edward Petronzio, Investigator
Mahnaz Khan, Industry Analyst

Cindy Cohen, Economist
Justin Jee, Accountant

Lita David-Harris, Statistician
Darlene Smith, Statistical Assistant

Michael Haldenstein, Attorney
Elizabeth Haines, Supervisory Investigator

Page 74

Production alternatives

U.S. producers produce circular mechanical tubing, other light-walled products, and
heavy-walled products using the same equipment and/or workers used for LWR pipe and tube.
In fact, LWR pipe and tube accounted for less than 20 percent of the quantity of products
produced using the same equipment and workers (see part III of this report). Fifteen of 19 U.S.
producers reported producing other products using the same equipment and/or workers as for
LWR pipe and tube and more than half of responding U.S. producers stated that they could
switch production from LWR pipe and tube to other products.

Subject imports from China

Limited information is available on the Chinese industry; no firms provided foreign
producer questionnaire responses. In the original investigations, staff concluded that it is likely
that producers of LWR pipe and tube in China have the ability to respond to changes in demand
with moderate changes in the quantity of shipments of LWR pipe and tube to the U.S. market.
The main contributing factors to this degree of responsiveness of supply were the existence of
alternate markets and inventories. Currently available information suggests that supply
responsiveness is likely to be at least moderate.

During 2008-10, Chinese LWR pipe and tube producers increased production by opening
new manufacturing plants (see part IV of this report). China’s global exports of LWR pipe and
tube more than doubled between 2008 and 2012.1 China exported LWR pipe and tube to nearly
200 countries during the period of review; its top 10 export destinations in 2013 included
countries in many regions including three countries in the Americas (Peru, Venezuela, and
Panama).

Subject imports from Korea

Limited information is available on the industry in Korea; no firms provided foreign
producer questionnaire responses. In the original investigations, staff concluded that Korean
producers have the capability to respond to changes in demand with relatively large changes in
the quantity shipped to the U.S. market. The main contributing factors to this degree of
responsiveness of supply were unused capacity and the existence of alternate markets.
Currently available information suggests that supply responsiveness is likely to be at least
moderate.

Korea’s global exports of LWR pipe and tube increased by 60 percent between 2008 and
2013.2 Korea exported LWR pipe and tube to nearly 75 countries during the period of review;

1 Based on export data reported for HS7306.61 (see part IV of this report). Note that this subheading
includes products outside of the scope of the orders.

2 Based on export data reported for HS7306.61 (see part IV of this report). Note that this subheading
includes products outside of the scope of the orders.

II-4

Page 75

the United States and Mexico were the top two destinations, followed by Japan, UAE, and Saudi
Arabia.

Subject imports from Mexico

Seven firms reported information on their operations in Mexico; these firms are
believed to account for the vast majority of Mexican production in 2013. Based on available
information, LWR pipe and tube producers in Mexico have the ability to respond to changes in
demand with moderate changes in the quantity of LWR pipe and tube shipments to the U.S.
market. The main contributing factors to this degree of responsiveness of supply are some
availability of unused capacity, alternate markets and inventories, and the ability to produce
alternate products.

Industry capacity

Capacity utilization increased from *** percent in 2008 to *** percent in 2013. This
level of capacity utilization suggests that producers in Mexico may have some capacity to
increase production of LWR pipe and tube in response to an increase in prices.

Alternative markets

Responding Mexican firms reported that about *** percent of their LWR pipe and tube
shipments were to their home market with most of the remainder to the U.S. market.
Shipments to third country markets increased from *** in 2008 to *** percent of total
shipments in 2013. ***.

Inventory levels

The ratio of inventories to total shipments increased from *** percent in 2008 to ***
percent in 2013. These inventory levels suggest that Mexican producers may have some ability
to respond to changes in demand with changes in the quantity shipped from inventories.

Production alternatives

Six of seven firms reported the ability to shift production between LWR pipe and tube
and other products. Slightly less than half of reporting Mexican firm’s production was products
other than LWR pipe and tube.

Subject imports from Turkey

Two firms reported information on their operations in Turkey; these firms are estimated
to account for *** percent of production in Turkey. Based on available information, producers
of LWR pipe and tube from Turkey have the ability to respond to changes in demand with
moderate to large changes in the quantity of LWR pipe and tube shipments to the U.S. market.
The main contributing factors to this degree of responsiveness of supply are the availability of
unused capacity, existence of alternate markets, and the ability to produce alternate products.

II-5

Page 148

D‐3 
 



This appendix is confidential in its entirety. All content has been redacted.

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