USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 31

Supply and demand considerations U.S. supply Table II-3 provides a summary of the supply factors regarding quartz surface products from U.S. producers and from subject countries. Both U.S. and foreign producers have increased capacity in response to growing demand for quartz surface products. Table II-3 Quartz surface products: Supply factors that affect the ability to increase shipments to the U.S. market 2017 2019 2017 2019 2017 2019 Inventories as a ratio to Capacity total Capacity (1,000 utilization shipments square feet) (percent) (percent) Shipments by market in 2019 (percent) Home market shipments Exports to non- U.S. markets Able to shift to alternate products No. of firms reporting “yes” Item United States *** *** *** *** *** *** *** *** 4 of 6 India *** *** *** *** *** *** *** *** 0 of 22 Turkey *** *** *** *** *** *** *** *** 0 of 3 Note: Responding U.S. producers accounted for virtually all of U.S. production of quartz surface products in 2019. Responding foreign producer/exporter firms accounted for virtually all of U.S. imports of quartz surface products from India and Turkey during 2019. For additional data on the number of responding firms and their share of U.S. production and of U.S. imports from each subject country, please refer to Part I, “Summary Data and Data Sources.” Source: Compiled from data submitted in response to Commission questionnaires. Domestic production Based on available information, U.S. producers of quartz surface products have the ability to respond to changes in demand with large changes in the quantity of shipments of U.S.-produced quartz surface products to the U.S. market. The main contributing factors to this degree of responsiveness of supply are the increased availability of unused capacity, available inventories, and some ability to shift shipments from alternate markets. Factors mitigating responsiveness of supply include U.S. slab producers’ limited ability to shift shipments from alternate products. U.S. slab producers’ capacity and production of quartz slabs has increased since 2017, and capacity utilization decreased during 2017-19 as a result of capacity increases outpacing production increases. The moderate level of capacity utilization suggests that U.S. slab II-5