USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 32

producers may have the ability to increase production of quartz surface products in response to an increase in prices. Two of seven slab producers indicated an ability to produce other products on the same equipment as quartz surface products. The responding fabricators reported they can fabricate other products, such as granite, stone, and marble, using the same equipment. 10 Subject imports from India Based on available information, producers of quartz surface products from India have the ability to respond to changes in demand with large changes in the quantity of shipments of quartz surface products to the U.S. market. The main contributing factors to this degree of responsiveness of supply are the demonstrated ability to rapidly increase capacity, as well as the ability to shift shipments from alternate markets. Factors mitigating responsiveness of supply include moderate inventory levels and a limited ability to shift production to or from alternate products. Indian producers’ capacity and production of quartz surface products has increased since 2017, with production nearly tripling from 2017-19. A relatively moderate level of capital utilization suggests that Indian producers may have some ability to increase production of quartz surface products in response to an increase in price. Most of Indian producers’ shipments are to export markets with the United States being the primary export market. The share of shipments to the United States increased during 2017-19. Most Indian slab producers indicate an inability to shift production to alternate products. One of the slab producers and a majority of the fabricators indicated an ability to switch production from quartz surface products to other products such as marble, granite, and stone. Subject imports from Turkey Based on available information, producers of quartz surface products from Turkey have the ability to respond to changes in demand with moderate changes in the quantity of shipments of quartz surface products to the U.S. market. The main contributing factors to this degree of responsiveness of supply are the demonstrated ability to increase capacity, increasing inventories, as well as some ability to shift shipments from alternate markets. Factors mitigating responsiveness of supply include limited ability to shift production to or from alternate products. 10 *** indicated slab production and fabrication of quartz surface products. II-6