USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 36

Figure II-2 Housing: Seasonally adjusted new housing starts, monthly, January 2017- December 2019 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Jan 2017 Mar 2017 Source: U.S. Census Bureau. https://www.census.gov/construction/nrc/historical_data/index.html, retrieved February 3, 2020. End uses and cost share U.S. demand for quartz surface products depends on the demand for U.S.-produced downstream products including countertops and vanities in kitchens, bathrooms, and commercial applications. Reported end uses include fireplaces, flooring, tiles, shower walls and pans, windowsills, fireplaces, wall cladding, and cabinets. Quartz surface products account for a large share of the cost of the end-use products in which it is used. Reported cost shares for quartz surface products averaged 53 percent, with the costs of other inputs made up by labor for installation and other material costs. Business cycles May 2017 Jul 2017 Sep 2017 Nov 2017 Jan 2018 Mar 2018 May 2018 Jul 2018 A slight majority of U.S. producers (5 of 9), a minority of importers (21 of 64), and about half of purchasers (17 of 35) reported that the U.S. quartz surface products market was subject to business cycles or unique conditions of competition. Specifically, U.S. producers, importers, and purchasers reported that the market is dependent on construction and renovation cycles. Regarding unique conditions of competition, U.S. producers, importers, and purchasers noted that consumer preference drives trends for alternative products made from porcelain, marble, granite, and stone. Eight U.S. importers noted changing dynamics in competition because of the imposition of AD/CVD duties on imports from China. U.S. purchasers noted that shortages resulting from tariffs on quartz surface products have led to the use of alternative materials. Some purchasers reported that Cambria is their only supplier of quartz surface products besides Sep 2018 Nov 2018 Jan 2019 Mar 2019 May 2019 Jul 2019 Sep 2019 Nov 2019 II-10