USITC Staff Report: Quartz Surfaces from India and Turkey staff report USITC | Page 37

imports from subject countries, imports from China, and using quartz surface product substitutes. Purchasers also noted the higher price luxury quartz surface products Cambria sells isn’t an appropriate option for all U.S. purchasers. Purchaser *** noted “Cambria has never established a presence in multifamily due to their position as a luxury brand that is double (or more) what a developer or general contractor is able to afford.” Demand trends Most firms reported an increase in U.S. demand for quartz surface products since January 1, 2017 (table II-4). Firms noted that more colors and designs were now available, and that quartz surface products were displacing natural stone types. Firms also reported that consumer awareness of quartz surface products and market acceptance have accelerated demand for the product, and that consumers perceive quartz surface products as a better product than other solid surfaces. Quartz was reported to be the top countertop option in the mass market, overtaking granite. 12 Table II-4 Quartz surface products: Firms’ responses regarding U.S. demand and demand outside the United States Number of firms reporting Item Increase No change Decrease Fluctuate Demand inside the United States: U.S. producers 8 --- --- --- Importers 45 6 5 8 Purchasers 25 5 2 1 Demand outside the United States: U.S. producers 5 --- --- 2 Importers 17 5 --- 4 Purchasers 6 3 --- 1 Demand for end use product(s): Purchasers 7 2 1 5 Source: Compiled from data submitted in response to Commission questionnaires. Substitute products Substitutes for quartz surface products include marble, granite, quartzite, porcelain, solid surface, cement, laminate, and various types of stone. Seven of nine U.S. producers, 48 of 64 importers, and 29 of 36 purchasers reported that there were substitutes for quartz surface products. The majority of responding firms reported that changes in the prices of substitute products had not affected the price of quartz surface products. Firms indicated that porcelain is 12 Conference transcript, p. 18 (Traxler). II-11