USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 27

Part II: Conditions of competition in the U.S. market U.S. market characteristics Quartz surface products are used in various interior hard surface applications including countertops, vanities, flooring, tiles, and other applications. 1 Quartz surface products are a high performing, durable, and low maintenance interior surface product. 2 The U.S. market for quartz surface products has expanded as the products have developed a reputation for being durable and low maintenance indoor surfaces, offered in a variety of patterns and colors. There are nine responding U.S. producers (seven firms produce slabs and two are independent fabricators,) and a large number of importers of quartz surface products. Apparent U.S. consumption of quartz surface products increased overall during 2017-19 with a small decrease from 2018 to 2019. Overall, apparent U.S. consumption in 2019 was *** percent higher than in 2017. U.S. demand for quartz surface products has increased as producers of quartz surface products continue to make products with more diverse colors and aesthetic designs, which allow for unique appearances or realistic natural appearances that closely resemble, and better compete with, natural granite or natural marble. Dynamic design properties of quartz surface products also allow producers to match consumer preferences. The joint respondents MS International and Arizona Tile argued there is market segmentation in the quartz surface products market, to where subject country imports serve a mass market and domestic producers such as Cambria serve a luxury market. 3 Cambria noted they also serve a mass market via big box retail stores, noted potential vendors opting for subject products over their own, and provided examples of subject companies marketing their products as luxury products as well. 4 1 Petition, vol. 1, p. 7. 2 Petition, vol. 1, pp. 6-7. 3 Joint respondents MS International and Arizona Tile’s responses to the first round of Commissioners’ questions, pp. 25-31. 4 Petitioner’s responses to the first round of Commissioners’ questions, pp. 10-16. II-1