USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 33

Turkish producers’ capacity and production of quartz surface products has increased since 2017, with capacity outpacing production. The decreasing level of capital utilization suggests that Turkish producers may have some ability to increase production of quartz surface products in response to an increase in price. Most Turkish 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. 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. Imports from nonsubject sources Nonsubject imports accounted for *** percent of total U.S. imports in 2019. The largest sources of nonsubject imports during 2017-19 were Spain, Vietnam, Israel, and China. Combined, these countries accounted for 69.5 percent of nonsubject imports in 2017-19. Supply constraints Two of seven responding U.S. producers reported supply constraints. *** cited capacity constraints due to increased supply and *** cited a shortage in inventory to supply customer demand on a few occasions. Thirty-six of 66 importers indicated supply constraints, to which they cited the antidumping and countervailing duties (AD/CVD) on imports from China 11 and an inability to find alternative sources of supply as the main cause. Fifteen of 36 responding U.S. purchasers indicated they faced supply constraints, to which they cited an inability to find specific designs as the main cause. Many importers and purchasers noted an issue with availability of certain types of quartz surface products after the imposition of AD/CVD orders on imports from China. New suppliers Twelve of 35 purchasers indicated that new suppliers entered the U.S. market since January 1, 2017. Multiple purchasers noted Dal-Tile and Elite as new suppliers in their local markets, as well as citing unspecified domestic and foreign suppliers. 11 As noted in part I, antidumping and countervailing duties were placed on quartz surface products from China on July 11, 2019. II-7