Polyvinyl Alcohol from Taiwan

178 Pages·2011·1.13 MB·English

Polyvinyl Alcohol from Taiwan
Investigation No. 731-TA-1088 (Final)
Publication 4218 March 2011
U.S. International Trade Commission
Washington, DC 20436
U.S. International Trade Commission
COMMISSIONERS

Deanna Tanner Okun, Chairman
Irving A. Williamson, Vice Chairman
Charlotte R. Lane
Daniel R. Pearson
Shara L. Aranoff
Dean A. Pinkert
Karen Laney
Acting Director of Operations
Staff assigned
Angela Newell, Investigator
Larry Johnson, Industry Analyst
Gerald Benedick, Economist
Charles Yost, Accountant
Mary Jane Alves, Attorney
Karl von Schriltz, Attorney
Mara Alexander, Statistician
George Deyman, 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
Polyvinyl Alcohol from Taiwan
Investigation No. 731-TA-1088 (Final)
Publication 4218 March 2011

CONTENTS
Page
Determination .................................................................. 1
Views of the Commission ......................................................... 3
Dissenting Views of Chairman Deanna Tanner Okun and
Commissioner Daniel R. Pearson ............................................... 35
Part I: Introduction ............................................................ I-1
Background .................................................................. I-1
Previous and related investigations................................................ I-2
Statutory criteria and organization of the report ...................................... I-3
Statutory criteria ........................................................... I-3
Organization of the report .................................................... I-4
U.S. market summary .......................................................... I-5
Scope PVA ............................................................... I-5
PVA ..................................................................... I-5
Summary data and data sources .................................................. I-5
Nature and extent of sales at LTFV ............................................... I-6
Sales at LTFV ............................................................. I-6
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-9
Domestic like product issues .................................................... I-9
Physical characteristics and uses ............................................... I-11
Manufacturing facilities and production employees ................................ I-12
Interchangeability and customer and producer perceptions .......................... I-12
Channels of distribution...................................................... I-13
Price .................................................................... I-13
Part II: Conditions of competition in the U.S. market ................................ II-1
U.S. channels of distribution..................................................... II-1
Regional sales ............................................................. II-4
Information on suppliers of scope PVA ......................................... II-5
U.S. market characteristics ...................................................... II-6
Purchaser profiles .......................................................... II-8
Supply and demand considerations................................................ II-11
U.S. supply ............................................................... II-11
U.S. demand .............................................................. II-16
Foreign demand ............................................................ II-25
Substitutability issues .......................................................... II-26
Factors affecting purchasing decisions .......................................... II-28
Comparison of the U.S.-produced and imported PVA .............................. II-33
Elasticity estimates ............................................................ II-37
U.S. supply elasticity ........................................................ II-37
U.S. demand elasticity ....................................................... II-37
Substitution elasticity ....................................................... II-38
iii
CONTENTS
Page
Part III: U.S. producers’ production, shipments, and employment ...................... III-1
U.S. producers ............................................................... III-1
U.S. capacity, production, and capacity utilization ................................... III-3
U.S. producers’ shipments ...................................................... III-4
Captive production ............................................................ III-5
The threshold for the application of the statutory criteria ............................ III-5
The first statutory criterion ................................................... III-6
The second statutory criterion ................................................. III-6
The third statutory criterion ................................................... III-7
U.S. producers’ imports and purchases............................................. III-8
U.S. producers’ inventories ..................................................... III-8
U.S. employment, wages, and productivity ......................................... III-8
Part IV: U.S. imports, apparent consumption, and market shares ...................... IV-1
U.S. importers ................................................................ IV-1
U.S. imports ................................................................. IV-1
Negligibility ................................................................. IV-2
Apparent U.S. consumption ..................................................... IV-3
U.S. market shares ............................................................ IV-3
Ratio of imports to U.S. production ............................................... IV-4
Part V: Pricing and related information ............................................ V-1
Factors affecting pricing ........................................................ V-1
Raw material costs .......................................................... V-1
U.S. inland transportation costs ................................................ V-3
Pricing practices .............................................................. V-4
Pricing methods ............................................................ V-4
Discounts and sales terms .................................................... V-5
Supply contracts ........................................................... V-5
Price data ................................................................... V-7
Announced selling-price changes for scope PVA .................................. V-7
Questionnaire price data ..................................................... V-7
Price trends ............................................................... V-12
Price comparisons .......................................................... V-13
Lost revenues and lost sales ..................................................... V-14
iv
CONTENTS
Page
Part VI: Financial experience of U.S. producers ..................................... VI-1
Background .................................................................. VI-1
Scope PVA and PVA operations ................................................. VI-1
Merchant market operations on scope PVA and PVA .............................. VI-3
Variance analysis ........................................................... VI-4
Assets and return on investment ............................................... VI-4
Capital expenditures and research and development expenses ........................... VI-5
Capital and investment ......................................................... VI-5
Actual negative effects ...................................................... VI-5
Anticipated negative effects .................................................. VI-6
Part VII: Threat considerations and information on nonsubject countries ............... VII-1
The industry in Taiwan ......................................................... VII-1
U.S. inventories of scope PVA from Taiwan ........................................ VII-2
U.S. importers’ current orders ................................................... VII-2
Antidumping investigations in third-country markets ................................. VII-2
Information on nonsubject countries .............................................. VII-3
Global market ............................................................. VII-3
Appendixes
A. Federal Register notices....................................................... A-1
B. Hearing witnesses ............................................................ B-1
C. Summary data............................................................... C-1
D. Price comparisons among the U.S.-produced scope PVA products and those imported from
Taiwan and nonsubject countries ................................................ D-1
E. Comparisons of questionnaire selling price data reported by Sekisui for PVA products
1-5 produced domestically and by *** for PVA products 1-5 imported from Taiwan ....... E-1
Note.–Information that would reveal confidential operations of individual concerns may not be published
and therefore has been deleted from this report. Such deletions are indicated by asterisks.
v

UNITED STATES INTERNATIONAL TRADE COMMISSION

Investigation No. 731-TA-1088 (Final)
POLYVINYL ALCOHOL FROM TAIWAN
DETERMINATION
On the basis of the record1 developed in the subject investigation, the United States International
Trade Commission (Commission) determines, pursuant to section 735(b) of the Tariff Act of 1930 (19
U.S.C. ' 1673d(b)) (the Act), that an industry in the United States is materially injured by reason of imports
from Taiwan of polyvinyl alcohol, provided for under subheading 3905.30.00 of the Harmonized Tariff
Schedule of the United States, that have been found by the Department of Commerce (Commerce) to be
sold in the United States at less than fair value (LTFV).2

BACKGROUND
The Commission instituted this investigation effective September 7, 2004, following receipt of a
petition filed with the Commission and Commerce by Celanese Chemicals, Ltd., Dallas, TX. The final
phase of the investigation was scheduled by the Commission following notification of a preliminary
determination by Commerce that imports of polyvinyl alcohol from Taiwan were being sold at LTFV
within the meaning of section 733(b) of the Act (19 U.S.C. ' 1673b(b)). Notice of the scheduling of the
final phase of the Commission=s investigation and of a public hearing to be held in connection therewith
was given by posting copies of the notice in the Office of the Secretary, U.S. International Trade
Commission, Washington, DC, and by publishing the notice in the Federal Register of October 4, 2010
(75 FR 61175). The hearing was held in Washington, DC, on January 25, 2011, and all persons who
requested the opportunity were permitted to appear in person or by counsel.

1 The record is defined in sec. 207.2(f) of the Commission=s Rules of Practice and Procedure (19 CFR ' 207.2(f)).
2 Chairman Deanna Tanner Okun and Commissioner Daniel R. Pearson made negative determinations.

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