ITC Investigation 731-TA-246 is a U.S. International Trade Commission antidumping (AD) proceeding on Brazing Copper Wire and Rod from New Zealand and South Africa, Invs. 731-TA-246-247 (Review). It's in the review phase and currently in completed status. No AD/CVD order has been issued from this investigation yet — the case will appear here once Commerce publishes a final determination.
Phase, parties, documents, and full text from USITC IDS
Brazing Copper Wire and Rod from New Zealand and South Africa, Invs. 731-TA-246-247 (Review)
Pending ITC investigation (review/completed) on "Brazing Copper Wire and Rod".
Full text (159,993 chars)
CERTAIN STEEL WIRE NAILS FRor~1 THE PEOPLE'S REPUBLIC OF CHIN.A, POLAND, AND YUGOSLAVIA Determinations of the Commission In . · ,. Investigations Nos. 731-TA-266 through 268 (Preliminary} Under the Tariff Act of 1930, Together With the Information Obtained in the Investigations USITC PUBLICATION 1 7 30 JULY 1985 ~ . . .. ~-. . .:-' United States lntematlonal Trade Commission I WahMgton, DC 20438 ·,·.· ·'' :: ..,... UNITED STATES INTERNATIONAL TRADE COMMISbION COMMISSIONERS Paula Stern, Chairwoman Susan W. Llebeler, Vice Chairman . Alfred E. Eckes Seeley G. Lodwick David B. Rohr Staff Assigned: Judith C. Zeck Abigail Eltzroth James M. Brandon John Ryan Paul Taylor Willfam Perry Robert G. Carpenter, Supervisory Investigator Address all communications to Kenneth R. Mason, Secretary to the Commission Uiiited S_tates International Trade Commission Washington, DC 20436 C 0 N T E N T S Determinations--· Views of the Commission--·... J..... __'·------- Information obtained in the investigations: Introduction----·····------- Other irl\/estigations concerning steel wire nails · ..................................·-···---.............................. _ Voluntary restraint agreements--·----·---· The product: Description and uses---··-··~-·----,.·--·········--------.. ·-·-·..-·..:__·--·....... ..:............. -·---·-·---·---·- M~:i.nu f ac tu r i nr3 process ·· ................................... U.S. tariff treatment--·-·---..--·-~-........:... __..._.__ -----·-·-· Nalun~ and <!Xlt~nt of alleg<!d sales at LTFV· · ·· ...... · ....................... _ U.S. producers---···-···-........... ___ ..................- .. -·--·-··---·· ..........·--·-.. . U.S. importers: China--............. _................. ------------·--~-·--·--..;...-._·------------·---- Po land· · · · ··· ·· · .... · · · ..... ·· Yugoslavia-·-·-..----·-...:..··--------·-----· The foreign producers: China-·--..·---·------·---·-..---·-·----·-·----·- Po land· Yugoslavia-..·---···- The U.S.market: __________ ......----·--·---·-·---·----..-.. _..,_,_.......... _.. , ........... 1 3 A-1 A-1 A-2 A-·3 A-3 A-·5 A-6 A-6 A-7 A-7 A-7 A--7 A-9 A-10 Marketing and channels of distribution-------·------·--···-··..---·--..·--·-·--·..,- A-10 Apparent consumption ·· · · ............. ___ ................................... _ A·-10 Consideration of alleged material injury to an industry in the United States · · · . U.S. production, capacity, and capacity ut~ lization------- ...-............. _._ U.S. producers' shipments A-11 A-12 A-12 U.S. producers' inventories-·'---·... -··--- A-14 Emph)yment and wages... ... .. ...---·--..........................................................- ..... ______ ... _..... -........... A-14 Financial experience of: U.S. producers ..----·- A-15 OV(!rall establishment operations· ...... · .......... A-15 Operations on certain steel wire nails - ......- ........-·-·-··--·-........ ___ .. _ A-16 The question of threat of 1tiaterial injury ......................................._. A-18 Consideration of the causal relationship between alleged material in1ur·y and allege~ly LtFV imports: U.S. imports-....·-·--·..----· ·-·--·-·--·,.... _ ... ______ U. s. market penetration· ·· A-18 A-20 Prices-------·-.. A-22: ., ~ Price trends· .........--..- .............................................. ·....................... _....- ..................................................... ·.... A-2 2 Price comparisons--..:--·------ A-23 Transportation costs· · ................................- ...................................-·-·---·-···................... _ A-25 Exchange rates---·----· A-25 Los t s a 1es· · . ······ ·· ···---····.. ···-··-........................... --·-·-- A-2 6 Combined lost sales~~·-- - A-27 Lost sales in.volving nails from China··· · ................·-····-·-.................................................... _ A-27 Lost sales involving nails from Poland-···-·----.. ·--- ...........·--·--..:.......... A-28 Lost rc~vanues .............. · ·· ·· .......... · .............-........... A--28 ii CONTENTS Appendix A. Appendix B. Appondix C. The .f..~~..~.r.~J ..R.~9 ..!..~Jer notices· ··· ············· ··············- f\--31 Li st of witnesses appearing at t!ie conference-·-.........................___............................... -... A-· .. 39 Descdption of steel wire~ nail:i· ........... ·· ...... A..... 43 Figures 1. Typ(~S of steel win~ nails· ................. · · · .............................................................. A·-4 C-1 . Types of na i 1 heads-...........................-·-·-····· ..·-·-------··-·.. ····-............................ -·-··-·-··............. ___ ...........-.....................................- ..........-:·---··--··-- A-4 4 G-2. Nail sizes by "pl~nny" (d) designations (length and wire gauges) ...................... A·-45 C-3. Wire gauge sizes, by gauge numbers and by diameter.s- ..............................._..._.................................. A-46 G-4. Types of nai 1 points .......................................... · · ····················-.. ······················ A--47 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Tables Certain steel wirl~ nails: U.S. rates of duty applicable to imports from China, Poland, and Yugoslavia, as of Jan. 1, 1982, Jan. l, 1985, and Jan. 1, 1987· Alleged LTFV margins, by countries and by types, late 1984 and early 1985 · Certain steel wire nails: Chinese production, capacity, and . (~Xports, 1982 ..···84 ................... ·· · · Certain steel nails: Polish produc.tfon, capacity, inventories, A-5 A--6 A-8 and (~xports, 1982····84 ···············································- A-9 Certain steel wire nai'ls: ·u.s. producers' d.omestic shipments, . imports for consump,t~op,,.and apparent U.S. consumption, 1982--84, January-March 1984,· ·and January-March 1985--··-··--···-··---···............-......................................................... --··· A-11 Certain steel wire nails: U.S. production,, capacity, and capacity utilization, 1982-84, Jan1.c.1ary-March 1984, and January-March 1985-·-·- A-12 Clfftain steel wire nails: U.S. prpducers' end-of-period inventories and shipments, 1982-84,, January-·March 1984, and January··-March 1985 -:················ ··. · ·· ····· ··· · ··· · Average number of production and related workers engaged in the ·111,;i,m.1facture of certain steel w'ire nails, hours worked by such workers·, wages paiCl, 1 'and tcital compensation, 1982-84, ·················-- A-14 J<muary····-March 1984, and January~rch 1985· · · ·· ·········--··-··-··············- A-15 !~come-and-loss experience of 13 U.S. producers o~ the overall opl-!r·ations 1;f their l~stablishm~rnts within which certain steel wire nails are produced, accounting years 1982-84 and interim periods ended Mar. 31, 1984, and Mar. 31, 1985 .............................................._ A-16 Income-and-loss experience of 13 U.S. producers on.their operations producing certain steel wire nails, accounting years 1982-84 and interim periods ended Mar. 31, 1984, and Mar. 31, 1985-·-·--- Certain steel wire nails: U.S. imports, by principal sources, 1982-84, Janaury-March 1984, and January-March 198~·-·------- A-17 A-19 lii CONTENTS 12. Certain steel wire nails: U.S. producers' domestic shipments, U.S. imports by selected sources, and U.S. consumption, 1982-84, J<:uiuary·..t1arch 198 4, and January-March 1985· ·· · ········ ·--·--·-·-···-···- A-21 13. U.S. producers' weighted-average net selling prices for sales of domestically produced nails, by quarters, January 1983-June 1985--- A-23 14. 16 penny bright common nails: U.S. producers' and importers' weighted··-av(~rage net selling prices for sales of domestic product and for sales of imports from Poland, and margins by which imports undersold/oversold the domestic product, by quarters, January 1983-June 1985-······················-····----·- A-23 15. 16 penny bright cununon nails: U.S. producers' and importers' weighted-·average net selling prices for sales of domestic product and r •. w sale~ of i.111por·b from China, and n1c:u·9ins by which imports undersold/oversold the domestic product, by quarters, January t 90'.'. .:T:Jne 1985 · · ······················ · ·- A-24 1.6. 16 penny bright common nails: U.S. producers' and importers' Mdghted····aver·agl'~ ru':!t selling prices for sales of domestic product and for sales of imports from Yugoslavia, and margins by which .impod.:s undersold/oversold the domestic product, by quarters, January 1983-June 1985 A-25 17. Indexes of nominal-exchange-rate equivalents of the Yugoslav dinar in U.S. dollars, real-exchange-rate equivalents, and producer price indicators in the United States and Yugoslavia, indexed by quarters, January 1982-June 1985--- ----····--·-·· A--26 Note. -Infi;.n·mation which would disclose confidential op~rations of ind iv id- ual concerns may not be published and therefore has been deleted from this re- port. These deletions ~re n~rked by asterisks. UNITED STATES INTERNATIONAL. TRADE COMMISSION Washington, DC Investigations Nos. 731-TA-·266 through 268 (Preliminary) Determinations CERTAIN STEEL WIRE NAILS FROM THE PEOPLE'S REPUBLIC OF CHINA, POLAND, AND YUGOSLAVIA On the basis of the record V developed in the subject investigations, the Commission determines, ~/ pursuant to section 733(a) of the Tariff Act of 1930 (19 U.S.C. § 1673b(a)), that there is a reasonable indication that an industry in the United States is materially injured by reason of imports from the People's Republic of China (China), Poland, and Yugoslavia of one-piece steel wire nails made of round steel wire, provided for in items 646.25 and 646.26 of the Tariff Schedules of the United Statgs (TSUS), and similar steel nails of one--piece construction whether over or under 0.065 inch in diameter, provided for in item 646.30 of the TSUS; two-piece steel wire nails, provided for in item 646.32 of the TSUS; and steel wire nails with lead heads, provided for in item 646.36 of the TSUS, which are alleged to be sold in the United States at less than fair value (LTFV). Background On June 5, 1985, a petition was filed with the Commission and the Department of Commerce by Atlantic Steel Co., Atlas.Steel & Wire Corp., Continental Steel Corp., Davis-Walker Corp., Dickson Weatherproof Nail Co., Florida Wire & Nail Co., Keystone Steel & Wire Co., Northwestern Steel & Wire Co., Virginia Wire & Fabric Co., and Wire Products Co., alleging that an 1/ The record is defined in sec. 207.2(i) of the Commission's Rules of Practice and Procedure (19 CFR § 207.2(i)). ~/ Chairwoman Stern and Vice Chairman Liebeler dissenting. ,• ... .' ·,. .~~ ~ ..~ ~~ i .. :- " ,. :-. : ,' '" . industry in tli~ .. Ur:iited.States. is.111ateriiill1Y ~njured and is threatened with material injury by reason of ,LTFV imports· of certain steel wire nails from China, Poland, and Yugoslavia. Accordingly, effective June 5, 1985, the Commission instituted preliminary antidumping investigations Nos. 731-TA-266 through 268 {Prel~minary). Notice of ~he institution of the Commission's investigations and of a public conference .to b~ held in connection therewith was given by posting copies of the notice in the Off~ce of the Secretary, U.S. International Trade Commission, Washington, DC, and by publi.shing the n,otice in the Federal Register of June 13, 1985 (50 FR_ 2484_5) ., The conference was held in Washington, DC, on_ ~une 26, 1985, and all.persons who requested the opportunity were permitted t<;> _appear in person. or; by counsel ... 3 VIEWS OF COMMISSIONERS ECKES, LODWICK, ABD ROHR On the basis of the record in investigations Hos. 731-TA-266 through 268 (Preliminary), we determine that tbere is a reasonable indication that an O• industry is materially injured by reason of imports of steel wire nails from the People's Republic of China (China), Poland, and Yugoslavia which are allegedly sold at less than fs.h· value (LTFV). In making this determination, we find that the domestic industry, consisting of the U.S. produ~erQ of ~teel wire nails, experienced losses throughout the period of inv~stigation. tndeed, the losses experienced during interim 1985 were the sreatest expe~ience4 during the period of investigation. In these preliminary investigatiQns, the Conunission cumulated imports from the three countries. Although the cumulated imports declined slightly in 1984, they increased ~ubstantially from 1982 to 1983. As a share of consumption, imports also increased from 1982 to 1984. There is evidence of underselling and lost sales attributable to imports from all three countries. The data available, therefore, provide. a reasonable indication of a causal link between material injury to the domestic industry and the alleged LTFV imports. Domestic industry and like product The term "industry" is defined in S 771(4)·(A) of the Tariff Act of 1930 as "[t]he domestic producers as a whole of a like product, or those producers .whose collective output of the like product constitutes a major proportion of the total domestic production of' that product."!/ The term "like product," !I 19 U.S.C. § 1677(4)(A). 4 in turn, is defined in § 771(10) as "[a) product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation . . . . " i.t The imported products under investigation are nails made from round steel wire, including one-piece steel wire nails, two-piece steel wire nails, and steel wire nails with lead heads. Nails are generally used to join two pieces of material, usually wood; all nails in this investigation are used for construction purposes.· These nails are available in a variety of heads, shanks, points, sizes, and finishes; various finishes are applied to nails to improve their holding ability or to prevent ·rust and corrosion. Common coating materials include zinc (galvanized nails), cement, and vinyl. Pe~itioners urge the Commission· to ·follow: its most recent decision in a final determination regarding nails' that all steel wire nails· under investigation were a single· like product.~/· In that investigation, the Commission determined that there were many ways in which imported and domestic nails might be differentiated, and that:although d'istinctlons between the characteristics and uses of certain nails could be made, they were so slight as to readily allow substitutions. The Commission concluded, "[t)hus, we have a large number of related like products (nail types) among which clear dividing lines frequently cannot be drawn and various degrees of fungibility exist." !I We adopt our prior determination that there is only one like product--all steel wire nails. Although the previous steel wire nail case did not involve two-piece nails, we further determine that two-piece nails should be considered like one-piece nails primarily because they are substitutable with !I 19 U.S.C. S 1677(10). ~/ Certain Steel Wire Nails from the Republic of Korea, Inv. No. 731-TA-46 (Final), USITC Pub. 1274 (1982). !I Id. at _4. 5 one-piece nails to a. considerable degree. Thus. we determine that there is only one like product--all steel wire nails. ~/ .· Even if the various nail types .are separate J1ke products, separate data for these various types of nails are not available. The Commission asked domestic producers in the questio~naires if they ~ould provide separate data on capacity. employment. and profit and loss on certain specific types of nails. Only six producers out of the 2.9 producer.s responding to. the . Conunission's questionnaire stated that they could provide separate data. ii Therefore, under section 771(4)(0), we ·considered-data for production of the narrowest group tha.t includes the separate like ·product, that is all steel wire nails. Condition of the domestic industry Apparent consumption of steel wire nails rose 39.6 percent between 1982 and 1984, and then declined 12.6 percent in the first quarter of 1985 as compared to the same 1984 period. The domestic industry's share of this generally increasing market, however, fell from 65.9 percent in 1982 to 57.2 percent in 1984, and remained at approximately that .level in the first quarter of 1985. U.S. production, capacity utilization, shipments, and employment increased from 1982 to 1983. However, these measures of the condition of the domestic industry declined or remained unchanged from 1983 to 1984 and then ; ....... dropped in January-March 1985~ Furthermore, the domestic industry operated at a loss for the entire period of investigation. ~I Respondents have not objected to defining the domestic industry as the producers of steel wire nails. ii Report of the Commission (Report) at A-11. 6 Domestic production "6f s~eel·. wire nails "increased 39 percent from 244 I 000 short tons in 1982 to 338,000 short·· toris in 1983, and then declined slightly by one percent to 335,000 ·short 1tons'in·1984. Production declined by 10 percent to 80,000,··short.-tons··iri. January-March 1985 as. compared with 89,000 .. short tons:in January-March 1984. l/ Capacity utilization increased from 39.8 percent in 1982 .to 57 :12 percent iri 1983, and then declined to 52.4 percent in 1984: Capaci~y utilization-declined further to .34.6 percent in January.:..March 1985· as eonipared with 45 /0 percent in January-Karch 1984. ~I 2/ · Domestic shipments increased from 534,000 short tons in 1982 to 654,000 short tons in 1983' ·but .then fell to 647 ~000 short tons in 1984 despite a 7 .5 percent gain in apparent consumption for that year. Shipments in January-March 1985 declined 9.3 percent from the same period last year. 10/ The number of production and related workers increased by 16 percent from :" \. . ...: 1,069 in 1982 to 1,241 in 1984. The number of workers then declined to 1,121 in January-March 1985 as compared with 1,~74 in January-Karch 1984. 11/ • .• • ,z:. Net sales of steel wire nails increased from $118.2 million in 1982 to $137.0 million in 1983, or by 1~.9 percent, and then increased slightly to , . . . : $138.1 million in 1984. Net sales decreased by 13.9 percent to $32.1 million in January-March 1985, as compared with $37.3 million in January-March ·' 1984. 12/ However, over the period.of investigation, sales revenue barely '. ";.'! ll Id;,.gt .'A:....12·.:.~ ~I Capacity increased from 493,000 short tons in 1982 to 511,000 short tons in 1984 ,' a"gain of 3r.'6 percent. · Capacity increased to 191,000 short tons in January-March 1985 as compared with 160,000 short tons in January-Karch 1984. Id. 2/ Id. 10/ Id. at A-l2~A-13: 11/ Id. at A-14-A-15. 12/ Id. at A-16-A-17. 7 covered the cost of goods sold. During the ·entire period, the domestic industry operated at an aggregate loss. The operating losses were $14.1 million (11.9 percent) in 1982, $7.4 million (5.4 percent) in 1983, and then increased to $8.7 million (6.3 percent) in 1984. The loss increa~ed dramatically to $4.2 million (13.0 percent) in January-March 1985 as compared with $2.1 million (5.8 percent) in January-March 1984. 13/ Although production, shipments, and capacity utilization increased during the early part of the period of investigation, the domestic industry experienced losses throughout the period. Furthermore, these losses have worsened since 1983. We therefore find that there is a reasonable indication that the domestic industry is materially injured. CUnrulation These investigations involve imports from three countries allegedly sold at LTFV. Thus, the Commission must decide whether it is appropriate to cUJllUlate imports from these three countries in assessing the volume and effect of these imports on the domestic industry. Section 612(a)(2)(A) of the Trade and Tariff Act of .1984 amends title VII of the Tariff Act of 1930 by adding a new subsection pertaining to cumulation. That provision states that: CUnrulation--For the purposes of clauses Ci) and (ii), the· Commission shall cumulatively·assess the volume and effect of imports from two or more countries of like products subject to investigation if such imports compete with each other and with the like products of the domestic industry in the United States market. 14/ 13/ Id. at A-17. 14/ Pub. L. 98-573, § 612(a)(2)(A), to be codified at 19 u.s.c. § 1677(7)(C)(iv). 8 Imports ~!3t.sati~fy three requii:-ements before. cumulation is warranted.. . . .. . . ;. . Imports must (1) ,compete with both other imports and the domestic like. .'.. . ..-.. , . . . . product, (2) b~_.marketed within a reasonably coincidental period, and (3) bef ' I • - . • subject to inves~igation. ~e Commission may exercise its discretion in determining whet~er_ import~·compe~e and whether the marketing of imports is reasonably coincident .. 15/ : . In. d_et'7rinin_ing. wt:iether the._Jmported products compete with each· other and with the like p_roduc t in th~ u: S. mar;ket and _whether the marketing of imports is reasonal>ly coincident, w;e have considered the following factors:• • • • - 1 j • • ' .Cl?. (2) (3) the degree of fungibility between imports from "diff ererit countries and between imports and the domestic like prod4ct,, including considera~ion of specific customer requirements and other quality related questions; the presence of sales or offers to sell in the same geographical markets of imports from different . co~ntries,_and ~he domestic like product; the existence of common or similar channels of dist~ibution of imports from different countries and ·· the· domestic like product; · ( 4) whether the pri.ces of· imports and the domestic like product ar~ within a'reasonable range; and, (5) whether the imports are s~mult~eously present in the market. J ·~ • • • ~· • .~ This is'not intended to be an exclusive list of considerations and no single r I ,·•. factor is determinative. 16/ With regard to the first criterion, the Chinese respondents argue that imports from cbit)a ·are. not ·.fungibl,e a~d: should not be cumulated with the imports from Poland and Yu~~slavi~.because'app~oximately 60 percent of the 15/ See Certain Carbon Steel Products from Austria, Czechoslovakia, East Germany, Hungary, Norway, Poland, Romania, Sweden, and Venezuela, Invs. Nos. 701-TA-=225-34 and 731-TA-213-17, 219~ 221-26, and 228-35 (Preliminary), USITC Pub. 1642 at 12-13 (198~) .· 16/ .Id. 9 nail imports from China are galvanized, whereas those from Poland and Yugoslavia are not. Petitioners respond that even if 60 percent of the Chinese nails are galvanized, there are still 40 percent of the imports that overlap with Polish and Yugoslav nails. 17/ Petitioners further argue that the galvanized nails are substitutable for other types of nails and have a cross price effect. 18/ The Yugoslav respondents argue that their imports should not be cumulated with those from China and Poland because they are of lower quality. 19/ However, we do not have enough information on the record in this investigation to support such a finding. We further note that although no arguments about the quality of the Polish nails have been made, the Yugoslav nails have been priced close to the price levels of the Polish nails. Finally, there have been increased imports of the Yugoslav nails, 20/ indicating that they are competitive with other imported and domestic nails. Based on the information available in these preliminary investigations, we find that the imported nails from China, Poland,. and Yugoslavia are fungible. However, these issues raised by the parties regarding cumulation will be explored more fully in any final investigation. With regard to the other criteria, there are common or similar channels of distribution for all of the nails, and the prices of the imported product and the like product are within a reasonable range. 21/ Finally, there are sales or offers to sell in the same market, and imports from China, Poland, 17/ Petitioners post conference brief at 22. 18/ Id. 19/ Post conference brief of Zelezarna Jesenice at 1-2. 20/ Report at A-19-A-20. 21/ Id. at A-10 and A-23-A-25. 10 and Yugoslavia are simultaneously presen.t in the market. 22/ Thus, we find that imports of nails from these three countries compete with each other and the like product and are reasonably coincident in the U.S. market. We therefore have determined to cumulate imports from China, Poland, and Yugoslavia. Reasonable indication of material injury by reason of ·imports from China, Poland, and Yugoslavia allegedly sold at LTFV In determining whether there is a reasonable indication that imports from China, Poland, and Yugoslavia are causing material injury to a domestic : :' ·. ·o - industry, we have considered the cumulative volume and effect of imports from . f. 11 • these three countries. Imports and import penetration, though declining somewhat last year, remain significantly above 1982 levels. 23/ Imports from China, Poland, and Yugoslavia increased from 49,000 short tons in 1982 to 83,000 short tons in 1983, and then declined to 81,000 short tons in 1984, a level still 65 percent higher than in 1982. Imports declined to 20,000 short tons in January-Karch 1985 as compared with 24,000 short tons in January-Karch 1984. 24/ As a share of U.S. consumption, imports from China, Poland, and Yugoslavia increased from 6.0 percent in 1982 to 7.9 percent in 1983, and then declined to 7.1 percent in 1984. In the interim comparison, imports as a share of U.S. consumption totaled 7.7 percent in January-Karch 1985 as compared with 8.2 percent in January-March 1984, but U.S. consumption fell 12.6 percent in that period. 25/ The increase in market share for these cumulated imports between .. 1982 and 1985 occurred as domestic market share was declining. 22/ Id. at A-18-A-20 and A-25-A-28. 23/ Id. at A-12. 24/ Id. at A-21. 25/ Id. 11 Imports from China, Pol~nd, and Yugoslavia continually undersold domestic products. When prices were compared for 16 penny bright conunon nails, the Polish nails continually undersold the U.S. nails by margins ranging from 6.1 to 16.3 percent. 26/ The Chinese nails undersold U.S. nails in five out .. of eight quarters from 1983-85 by approximately 5 to 8 percent·. 27 I The Yugoslav nails undersold domestic nails in all six quarters for which comparisons were available by an average margin of 16 percent. 28/ The Commission also has confirmed several lost sales to Chinese, Polish, and Yugoslav nails. 29/ In a number of instances, the purchasers stated that lower price was the primary reason for buying the imported nails. 30/ It should be noted that domestic prices for the three types of nails surveyed in mid 1985 have either remained the same or declined since 1983, indicating possible price suppression. Therefore, we determine that there is a reasonable indication that the domestic industry is materially injured by reason of imports from China, Poland, and Yugoslavia allegedly sold at LTFV. 26/ Id. at A-23-A-24. 271 Id. at A-24. 28/ Id. at A-24-A-25. 29/ Id. at A-27-A-28. 30/ Id. i3 Uiews of Chairwoman Stern I 'de-termine t_hat there is no reasonable indication that an :industry .in the United States is materially injured or threatened with material injury by reason of imports of certain steel wire nails from either China, Poland, or Yugoslavia which are alleged .to be sold at LTFU.1/ My negative determinations in these investigations are based upon the lack of any reasonable indication on the record of a causal relationship bet~een imports from China, Poland, or Yugoslavia and the ·condition of the U.S. industry. I adopt the analysis presented by my colleagues in the majority opinion concerning the like product and the domestic industry· to be exa.mined for the purpose of making an a~sessment of material i~jury. Thus l conclude that the domestic industry consist~ of the· U.S. prod~cers of steel wire nails. I likewise recognize that ~he U.S. n~il in du s tr.y, .. is. f?.Xperiencing di.ffi cul ti.es. These di f fi cul ties are e·specially manifest in the losses experi·enced by the U.S. steel wire nail producers throughout the period under investigation. I find, however, that there is no reasonable indic~tion that the difficulties experienced by the U.S. producers can be attributed to the allegedly LTFV imports of nai 1 s from China,· Poland, or Yugoslavia. 1/ Material retardation is not an issue in these investigations and will not be addressed further in these views. 14 - . '. . No basis for cumulatibn Se·c.t;ion 7~71'(7)'-0f' the Tariff Act of 1930, 'as amended by the Tariff and ~rade Act of 1984, provides: .for purp6ses of clauses (i) and· (ii), the Commission· shall cumulatively assess the volume :·and effect of imports· from two or more countries of like products subject to investigation if ·such imports ·compete with· each tither and with like products of the domestic industry, in "the United States mark~t.l/ I find that imports· of nails from Chiria, Poland, and Yugoslavia should not be~cumulated because they do not meet an important criterion for cumulation: they do not= compete·with each other; Imports from China are ess~ntially'specialty nails . ... . For example·,. in· 19·84, nearly ·10: percent of the nails imported·fr6m China·were~galuanized~ ·the bulk of which were electrogalvanized roofing· ~ails. Only a very small portion· of the ·nails imported from' China were .·bright .common nails. In comp~rison; about half of the nails f~om Poland, in:19~4, were bright ~ommon nails, and half wer~ cement-coated .nails. Virtually all of the nails imported' from'Yugoslavia,were bright common nails. 2./ 19 u . s. c . § 16 7 7.<. ~) ~ c) (iv) . ~ . . :: ~ .' :· .;;. . .-· . .... 15 Clearl~t;· .the speci,~lty n.ai.J..s· imported from Chin-a do not compete with the ordinary bright commo~ ~nd cement-coated nails from Poland and Yug6slavia. Indeed, :there is a: question as :to whether the· specialty Chinese nails com~ete with~U;S.-produced n~ils. For example, "about half "iof .. the Chinese· exports are electrogalvanized nails; whereas such·n~ils aceount for le SS that S percent Of U\ s~· ·prOdUCerS I nail ''Shipments, Thus, we conclude that nails imported from China .should not be cumulated with nails imported fro·m Poland and Yu gos J.av,ia .... · I further conclude· ;that. even though Poland .and· Yugoslavia export similar types of nails to the United States, these nails should not be cumulated with each other. In a previous antidumping investigation concerning Yugoslav nails conducted in August.1981,!/ a .unanimou~ Commission noted~that such nails were generally considered to be of low quality. ·During the·current. investigation, the record indicates :that Yugos·lav nails continue to be of low quality.!/ These low quality·nails do not compete with the higher quality nails from Poland.· Thus, nails from these two countries should not be cumulated. 11 Certain Steel Wire Nails from Japan, the Republic of Korea, and Yugoslavia: Determination ~f the Commission in Investigations Nos. 731-TA-45, 46, and 47 (Preliminary), USITC Publication 11.7 5, August 1981. ; : ,.. !/ See Report at A-10. . ' ..· .. ', ••• 1· 16 . No reas,onable · indication-.. o.f> inj ury1 b.y .r..e:ason of imports from either China',•, Po-land, or. Yugoslav;ia ,, Section 733{:aJ of. t.he T~r.J.ff .A:ct of 1930 provides that the Commission~ sha11 make a. determi·nation, base·d on the best . inf o:rmab-ioi:i av.ai'labl.e.- to· it at the time· of. the de termi nation, , of wl:l.e.ther .the.re.. is a ·reasonable· ·indi ca ti on that the- impo,i:-ts. urtder .investigation .have caused or threaten to cause· ma.ter.ia 1 ··injury .to .a U.S. ind us try. The act further., s pe c.ifie s:. in section 7 71 ( 7·);; that. the Commission shall consid..er\ ·among olhe.r factor.s, .(.1) the vblume of imports of the·merchandise under investigation~ (2) the effect of .imports-of that.merchandise on prices in the United. S:t~tes. for. like- products·.. and (3) the impact of imports of~s~~h merchandise on.domeshic producers of like . products ..~ ·:.. ~ ·... China. -:-;-I.mport~ of nails from Chin'a have held a l.ow and fair.ly. st:able: ~.har·e of the U.S .. mark.et during the period of investig?tion 1·. -·This sha.re ranged from 3. 6 to 4.8 percent, The: Chinese. have ~ttained this market share by concentrating i.n s-pecialty r:tails which are produced in small quanti,ti~s. by the .u-. S. :produce.rs;-; This low volume of specialty n?ils, could not pos.sibly .. have an effect on the overall prices of nails in the U.S. market, or on the . .. .. . . . .' .' , .. ~. . . -~ .... . .' overa.11 · he?.l t_.l'_l.·_ of .-~h-f_ ~--:·s-: producers. : Thus, I conclude ; • ., 'z.'. .. ' • : .# -~: • .·.. : ' ' • • • • that there" is no· reas'()nable ..indicat-ion "that· an industry in the Uniied States is materially injured by reason of impor.ts of nails from China. 17 Poland.--Imports of na1ls from Poland were abnormally low in 1982 because of a dockworkers' strike in Poland~ In examining the trend in imports of nails from P6land, I conclude that it is -appropriate to examine the level of imports in 1980 and 1981~ the· 2 ·years prior to the dockworkers' strike. Imports from Poland were 27,000 tons . . . in 1980 and 26,000 tons in 1981. These imports fell to 10,000 tons in 1982. Since then, imports have not . . attained the levels attained before the strike. In 1983 ; . ' and 1984,. these imports totaled 21,000 tons and 24,000 tons, respectively. As a share of U.S. consumption, imports from Poland increased from 1 percent during strike-year 1982 to 2 percent during 1983 and 1984. Imports from Poland have had a stable presence in the U.S. market for a number of years. The market share held by these imports has been small. The very limited evidence of sales lost to imports from Poland is inconclusive. In addition, no producer provided information concerning instances in which it was forced to lower its price or lose a sale to lower-priced imports from Poland. Thus, I conclude that there is no reasonable indication that an industry in the United S~ates is being injured by reason of imports·of nails from Poland. Yugoslavia.--In the previous preliminary antidumping investigation concerning nails from Yugoslavia, concluded in August 1981, the Commission stated-- 18 .... · imports from Yugoslavia accounted for a minimal s h.ar.e of apparent U.S. consumption during 1973-80, remaining consistently at 1 or 2 ,. p~rcent of appar·ent u.. S .. consumption. In addition, they are generally considered to be of .lowe·r .qualit·Y ..than· American nails. The small volu~e and reputed low quality of these na-ils are such tha·t.. they. could not have had any appreciable impact on the U.~. nail industry. ·. { • I After an examination of all of the inform·ation on the • ,. J • '- •• +· record of the current investigation concerning Yugoslav .... nails, we conclude that nails imported from Yugoslavia . : ! \. }' still do not have "any appreciable impact on the U.S. nail. . -~· ·' industry." The Yugoslav nails are still reported to be of ' I • • ~ . low quality and accounted for only 1 percent of the u~s. market during January 1982-March 1985. In addition, there .. . ~ ; are no confirmed instances of sales lost to lower-priced . ,· imports from Yugoslavia and no U.S. producer provided the ;', , Commission with any allegations concerning lost revenues ' ' .... '- because of imports from Yugoslavia. Thus, I determine . . . . . ' that there is no reasonable indication that an industry in........ the United States is materially injured by reason of imports of nails from Yugo~lavia. An analysis of market sh~res in this industry clearly {. shows that if there is any causal link between increased ..~ . : ·: ·:' imports and any injury sustained by the domestic industry, the relevant imports are from sources other than China, • ? ; : 19 Poland, and Yugoslavia. The domestic producers' share of the market declined from 6S.9 percent in 1982 to S7.2 percent in 1984. Imports from sources other than China, Poland, and Yugoslavia accounted for nearly 90 percent of this loss in market share by domestic producers. No reasonable indication of threat of material injury by reason of imports from China, Poland, and Yugoslavia Imports of nails from each of these three countries have been low and stable for a number of years. There is no information on the record to suggest that imports from any of these three countries might increase in the near future so as to be a threat of material injury to a U.S. industry.~/ Utilization of capacity to produce nails in China and Poland has been constant and has remained at high levels during 1982-84. I conclude, therefore, that there is no reasonable indication that an industry in the United States is threatened with material injury by reason of imports of nails into the United States from either China, Poland, or Yugoslavia. S/ Indeed, the available information indicates that imports from China and Poland may soon be limited by voluntary restraint agreements (VRAs) negotiated with the U.S. government. See Report at A-3. VIEWS OF VICE CHAIRMAN LIEBELER I determine that there is no reasonable indication that an industry in th• United States is materially injured or threatened with material injury by reason of imports of certain steel wire nails from China. Poland. and Yugoslavia which are alleged to be sold at LTFV. 1 My negativ·e determinations in these investigations are based upon the lack of any reasonable indication of a causal relationship between imports from China. Poland and Yugoslavia and the ·condition of the U.S. industry. I adopt the analysis presented by my colleagues in the majority opini6n· concerning the like prodtict and the domestic industry to·· be examined for the purpose of making an assessment of material injury. The domestic industry consists of the U.S. producers of steel wire nails. The U.S. nail industry is experiencing· difficulties. These difficulties are especially manifest in the· losses experien_ced by the U.S. steel wire nail producers throughout the period under investigation. I find. however. that there is no reasonable indication that the difficulties presented by the U.S. producers can be attributed to the allegedly LTFV imports of nails from China. Poland and Yugoslavia. lMaterial retardation is not an issue in these investigations and will not be addressed further in these views. 22 No reasonable indication of injury or threat of injury by reason of imports from either China, Poland or Yugoslavia Section 733(a) of the Tariff Act of 1930 provides that the Commission shall make a determination, based on the best information available to it at the time of the determination, of whether there is a reasonable indication. that th~ imports under investigation have caused or threaten to cau$e material injury to a U.S. industry. The act further specifies in section 771(7) that the Commission shal~. consider, among other factors, (1) the volume of imports of the merchandise under investigation, (2) the effect of imp~rts of ~hat merchandise on prices in the United States for lik~ products, and (3) the. impact of imports of such merchandise on domestic producers of like products. In analyzing the data, I have adopted a.five factor test:. . ~ . . "The stronger the. evidence of the following· . . . , the more likely that an affirmative determination will be made: (1) large and increasi~g marke~ shares, (2) high dumping margins,· (3) homogeneous products, (4) declining prices and (5) barriers to entry to other foreign producers."2 · Obviously in a preliminary determina~ion we do not know the dumping margin, if any. Therefore, we must give the benefit of the doubt to the domestic industry, and.will normally assume that the dumping margins are of the alleged magnitude. 2certain Red Raspberries from Canada, Inv. No. 731-TA-196 USITC Pub. 1707 (June 1985) Views of Vice Chairman Liebeler at 15. On some of the other questions. however. we have reliable information that compels a neqative determination. The cumulative market share of imports from China. Poland and Yuqoslavia was 6.0\ in 1982. 7.9\ in 1983. and 7.1\ in 1984. 3 This market ~hare is neither larqe nor increasinq. Further. there are no siqnificant barriers to the entry of nails from other foreiqn sources int~ the· market. The market share of imports from other nations has increased from 28.0\ in 1982. to 29.9\ in 1983. and to 35.&\ in 198~. 4 This is a clear indication that ·were our determination to result in the imposition of an anti-dumpinq duty. either the imports from China. Poland and Yuqoslavia would be displaced by imports from other countries. or the nail producers in China. Poland and Yuqoslavia would be forced to absorb the duty and continue to sell at the same price in order to even maintain their current market share. 5 In either case. the domestic industry would not be materially helped by the duty and. therefore. are not now beinq materially injured by LTFV sales. I conclude. therefore~ that there is no reasonable indication that an industry in the United States is injured or 3staff Report Table 12 at A-21. 41d. 5This analysis does not entail a weiqhinq of the causal impac~ of the imports from China. Poland and Yugoslavia against.the impact of imports from other nations. 24 threatened with material injury by reason of imports of nails into the United States from China. Poland or Yugoslavia. A-1 INFORMATION OBTAINED IN THE INVESTIGATIONS Introduction On June 5, 1985, counsel for Atlantic Steel Co., Atlas Steel & Wire Corp., Continental Steel Corp., Davis-Walker Corp., Dickson Weatherproof Nail Co., Florida Wire & Nail Co., Keystone Steel & Wire Co., Northwestern Steel & Wire Co., Virginia Wire &·Fabric Co., and Wire Products Co. filed an antidump- ing petition with the U.S. International Trade Commission and the U.S. Department of Commerce. The petition alleges that an industry·. in the. United States is materially injured and is threatened with material injury. by reason of imports from the People's Republic of China. (China), Poland,. and Yugoslavia of i:m~~···-pi<~cc steel wire nails made of round steel wire, provided for in items 646. 25 and 646. 26 of the Tari ff Schedules of the United States (TSUS), and simiL~r· ~stoel nails of one-piece construction whether over or under 0.065 inch in diameter, provided for in item 646.30 of the TSUS; two-piece steel wire nails, provided for in item 646.32 of the TSUS; and steel wire nails with lead heads, provided for iri item 646.36 of the rsus, which are allegedly sold. at less than fair value (LtfV). Accordingly, the Commission instituted prelimi- nary investigations under the provisions of the Tariff Act of 1930 to deter- mine whether there is a reasonable indication that an industry in the United States is materially injured, or is .threatened with material injury, or the establishment of an industry in the United States is materially r~tarded, by reason of imports of su.ch merchandise into the United States. The statute directs that the Commission make its determinations within 4·5 days after its receipt of a petition, or in these• cases, by July 22, 1985. Notice of the institution of the Commission's investigations and of a conference to be held in connection therewith was given by posting· copies of the notice in the Office of the Secretary, U.S. International Trade Commission, Washington, DC, and by publishing the notice in the Federal .~~i~.!er of June 13, 19_85 ( 50 F. R. 24845) . · JI The conference was held in Washington, DC, on June 26, 1985. ~/ The briefing and vote was held on July_ 16, 1985. Other Investigations Concerning Steel Wire Nails In February 1979, the Commission unanimously determined that an indus- try in the United States was not. being injured and was'- not likely to be injured, and was not prevented. from being established, by reason of ·the im- portation of certain steel wire nails from Canada that were being, or were likely to be, sold at LTFV within the meaning of the Antidumpirig Act, 1921. In August 1980, the 'Commission determined that an industry in the United States was not materially injured and was not threatened with material injury, and the establishment of an industry in the United States was not materially retarded, by reason of imports of· certain steel wire nails from the Republic of Korea (Korea),·· provided for in i terns 646. 25 and 646. 26 of the TSUS, which Commerce det.ermined were being sold at LTFV. JI Copies of the Commission's and Commerce's notices are presented in app. A. ?./ A l.ist of ·witnesses appearing at the confel"'ence is presented in app. ·e-. A-2 In August 1981, the Commission determined that there was no reasonable indication that an industry in the United States was materially injured, or threatened with material injury, or the establishment of an industry in· the United States was materially retarded by reason of imports of certain steel wire nails from Yugoslavia, which were allegedly sold at LTFV. At the same time, a concurrent antidumping investigation concerning nai 1 imports from Japan was terminated on the basis of assurances provided by the Japanese manu- facturers. '. In .August 1982, the Commission determined that an industry in the United States was materially injured by reason of imports ·from Korea of steel wire nails, which were being, or were likely to be, sold in the United States at LTFV. Accordingly, Commerce issued an antidumping or·der concerning Korean nails. This antidumping order is still in effect today. However, it is possible. that this order will be revoked as a consequence of a voluntary re- straint agreement concerning imports of nails from Korea effective October 1, 1984. In June 1982, counsel for Armco Inc., Atlantic Steel Co., Florida Wire & Nail Co., New York Wire Mills Corp., Virginia Wire & Fabric Co., and Tree Island Steel, Inc., filed a countervailing duty petition with the Commission and Commerce concerning nails from Korea.· In September 1982, the counter- vailing duty investigation concerning Korean nails was terminated following a ~fotenninati(.lrl by· Cu1wi11u·ce that th(! manufacturers, producers, or exporters of nails were not receiving benefits that constituted subsidies. In July 1984, the Commission determined in investigation No. TA-201-51, on carbon and certain alloy steel products, under section 201 of the Trade Act of 1974, that certain steel products, including steel wire nails provided for in items 646.25 and 646.26 of the TSUS (Chairwoman Stern and Vice Chairman Liebeler dissenting), were being imported into the United States in such in- creased quantities as to be a substantial cause of serious injury to the domestic industries pro.ducing articles like or directly competitive with the imported articles. Following the Commission's determination, the United States negotiated various agreements to limit the importation of steel prod1;-1cts into the United States. These agreements, as they relate to nails, are described below. Voluntary Restraint Agreements On September 18, 1984, the President directed the Office of the United ~tates Trade Representative (USTR) to negotiate voluntary restraint agreements (VRA's) with certain steel-supplying countries. The agreements are adminis- tered on either a market share o·r tonnage basis and will remain in effect for a 5-year period beginning October 1, 1984. The an·angements include a com- prehensive coverage of. carbon and alloy steel .P"."Oduc-ts (including nails ·and other wire products) except ·those products already under quotas as a result of the section 201 investigation o~ specialty steel conducted in 1983. A-3 The USfR has concluded VRA' s with 12 countries .as of June 26, 1985. V Negotiations with Poland are reportedly in· the final stages of completion. With respect to the agreement on nails imported from Korea, the largest foreign supplier of nails, the USTR has negotiated a market share allowance. During the 15-month period beginning October 1, 1984, it is estimated that und(ff the agreement import~ from Korea wi 11 total 164, 000 tons, or on an annualized basis, about 37 percent below the level of imports in 1984. The exact impact the agreements will have on nails imported from the remaining 11 countries is unknown, since the agreements specify imported .wire products rather than nails. The China National Metals & Minerals Import & Export Corp. {Minmetals) has indicated to the U.S. embassy in Beijing that it would like to enter into a VRA concerning exports of nails to the United States. The embassy reported that- . ·~ . . * * * ·* * * * Minmetals controls the exportation of vir~ually all nails produced in China. The Product Description and ___~ The products which are included within the scope of these investigations are steel wire nails. These· include nails of one-piece construction made of round steel wire, steel wire nails of two-piece construction, and steel wire nails with lead heads. Nails ·fitting this description are available 'in a variety of heads, shanks, points, sizes, and finishes. '{/ An indication of the variety of nails. can be· seen in ·figure 1. Nails are generally used to join two pieces of material, usually wood.. Mariufa£!uring process A nail is produced by drawin"g wire rod through a nail machine, where the head is formed. It is then pushed thrQugh the machine until the nai 1 is of the desired length,· at which time .it .is pinched to form a point and then cut. The nail is then expelled and collected for tumbling' or for further finish- ing. fwo-piece nails receive additional processing in which square or round ·metal caps or neoprene washers are inserted onto the nails. Various finishes are sometimes applied to nails ·to improve their .holding ability or to prevent rust and corrosion. Common coating materials include zinc (galvanized nails), cement, and vinyl. In addition, some nails ar.e. collated {attac!ied to strips of tape or other adhesive material) for use. in pneumatic nailing guns. ]I The countries that have agreed to VRA' s with the USTR are Australia, Brazil, Czechoslovakia, Finland, Hungary, Japan, Korea, Mexico, Romania, South Africa, Spain, and·, Venezuela. ll A description of nail types is presented in app. C. A-4 Fig~re i . --Types of steel wire nails. Common nail (flat· head, ·diamond point)....;. ______ ~~jiil;1 ~ng.u..Djl..1jiJdii!iiiiii!iiiiiiiii!i!i;;;;;;;;;;~~ Finishing nail (cupped hr.ad head', diam:md point)------------------------------------- •;-~;';auDJUCiiiiiiiiiiiiiiiiii;;iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim::::.. F'.looring nail (casing 'head, blunt po~nt)----- II - Pinning nail (flat head, needle point)------- ~j~JPPiWPilil'OiiiiiiiOiiiiiiiOiiiiiiiiiiiiimiiiiiimiiiiii:;;;;::;;;;:;::- Roofing nail (large flat head, barbed ~ shank, diamond point)-------------------- ~.....,..ij"gl~itQ:~";~c~;~-·;·i:......;·~7'>- Scaffold nail (double head, diamond point)--- ~....._..,1 1JMM!l~AJJu~wJaJ............l!l!!ll!l!!l!I!!.-~ Hi;~~n ~}~=-~~=~-~~'.'.'.'.~~~~'.'.'.'.~-~=~~~-~~~~==--- .~ "Ml' i ,_ Hinge· nail - (oval head, chisel point)--------- ~ fP'@dJlt Shade roller pin (projection head, diamondpoint)---;;. _______________ ..;._..:. ______________ _ ewe- ~ Dowel pin' '(headless"> barbed shank, d·iamond point)-----------------~-..:.--------~------- Piddd?ddd'df2> Pallet nail (flat head, screw shank, diamond point)-----------------:.____________ ~3?¥2rs :SJliSS:~§p Drywall nail (sinker head, ring shank, needle point)-------_:--------:·--------------: Fence staple-----:...: __ _:_...; ____________ -:--------- ~ ·: Source: Sales brochures of Atlantic Steel Co. and Republic Steel Corp. Note.--The above.nails ar~ normally available in bright, galvanized, or cement-coated .-finishes ·and most can be supplied with different heads, shanks (e.g.' ring, screw, or of non-standard gage), or points according to customer order. A-5 U.S. tariff treatment The imported nails which are the subject of these investigations are classified under items 646.25, ·646.26, ~46.30, 646.32, and 646.36 of the TSUS. More than 95 percent of the nails under investigation are . imported under .ilc!rns · 646. 25 and 646. 26 Qf the TSUS. The most-favored-nation (col. 1) rate of duty for the·se_ two l.tems is 0.5 percent ad valorem. The column 2 ~-:·1tw:s fiJr· I.hr~~·! twr_i· lei.r·t·ff item~- .=d"Q 2 ~rtd 3 t;, percent ad valorem, respec- tively. The rates of duty applicabie to imports ·of all the nails subject to invelSllg<i'tion from China, Poland, and Yugoslavia are presented in table 1. Table l.~Certain steel wire nails: U.S. rates of duty applicable to imports from China, Poland, and Yugoslavia, as of Jan. l, 1982, Jan. 1, 1985, and Jan. 1, 1987 TSUS item No.· 646.25 646.26 646.30 646.32 646.36 ~/: !/: i/: Nai 1s covered !/ 1-piece steel wire nails made of round steel wire: Jan. l, 1982 Under 1 inch in length 0.5'1. and under 0.065 inch in diameter. 1 inch or more in length and 0.065 inch or more in diameter. Similar .steel nails of one : piece construction whether: over or under 0.065 inch in diameter. 2-piece steel wire nails-·-·: Steel wire nails with lead heads. 0 .. 5'1. 3. 7'1. 2.3'1. 8. l'I. Rate of duty Col. 1 ?../ Jan. 1, 1985 0.5'1. 0.5'1. 3.41. 2.3'1. 6.7'1. . . Jan. 1, 1987 0.5'1. 0.5'1. 3 . 2'1. 2. 3'1. 5. 7'1. . Col. 2 ~/ 21. 3.5'1. 5.5'1. 8'1. 45'1. J/ These TSUS items include products that are not subject to these investi- gations. The infonnation in this column briefly describes only those nails subject to the irivestigations.. . . ~/These rates apply to impor~s from China and Yugoslavia, except as noted. JI These rates apply to imports from Poland. '!./ Imports under these i terns ha~e been designated as articles eligible for duty-free treatment under the Generalized System of Preferences (GSP). Yugoslavia is a designated beneficiary developing country and, thus, is eligible for preferential treatment wi t.h respect to items imported under these TSUS items. However, there have be·en no impor~s from Yugoslavia under. these. TSUS items .. Source: Tariff Schedules of the United States. A-6 Nature and :-E.xtent of Alleged Sales at L T·Fv· The petitioners allege t~iat imports_ of _'nails from China,' Poland, and Yugoslavia are being 'sold in',the United .states at' LTFV. Chi.n,a and Poland are nonmarket-econo'my countries. · Thus, · ih calculating the foreign. market value of nails from China al')d Poland, the petitioners used information concerning the foreign market value ·~of ·nci'iis produced in ·surrogate count.ries. The peti ti one rs selected Singapore and India as. appropriate surrogate countries for China, and Greec~ arid Italy as surrogate· couhtries. for .Poland. T.o cal- culate the LTFV ·margins for China and Poland, the pe-ti tioners compared the construct.ed values of producing nails in the surrogate countries with the average export prices of nai IS from China and Poland to the United States. These LTFV margins ·ranged''from·ss.4 to 85.8 percent :for i_mpo'rts.from China and from 78. ·2 ·to 83. 6 · Fiercent for imports from Poland '(table 2). · · ·' Table ~.-..·--Alleged LTFV margins, by countries and by ... ' · · types, late 1984 and early 1985 · Tyi;>e ~f nails China Poland Yugoslavia -----·--------·----·------------~- ..;.,.._-------~---·---- Bright commorr----------'---- Cement coated ......................................................................... __ _ Galvanized roofing1---------- 60.1 ss·.4 as·. e '.78.~ 83.6' !I . . . 11 !/ 91. 5 ' . • I I J ' ........1/"iilo ma.r9In's.......ca 1 cuTa·t·ecL~----·-·...... -~ ..........................................,..........·:· ·:...........~_... _....................,.....:........:, ..................-._.....................................---·-····· ..·- , Source: The petition filed with the U.S. Department· of ·commerce and the U.S. International Trade Commission. .: '~:. . . To calculate the LTFV margin!?. for imports of nails f:'~o~ Yugoslavia, the petitioners compared the constructed value of producing· nails in· Yugos la,via with. the prices at wtii'ch . Yugoslav nai 1S ?/e . so id in. the Uni°ted. States. According· to the petitioners' calculations,._ the LTFV margin for nails from Yugoslavia is 91.5 percent, :· i' .. u.s. Producers There are. approximateiy 50 major producers :·of steel wire nails located throughout the United States. The U.S. steel wire nail industry has histori- cally consisted of three general groups. of producers: large integr_ated ·and smaHer- noriinte'g'rated 's'tee·1~produc 1 in9 fi'rms ~f:l;it manufacture st~el w·ire rod, draw it into .wlre, 'and th'en-make'nails from the wire,.'and smaller. converting firms that make nails from purchased .steel wire f'."od or drawn wire. The larger inl.l..'1_3r'<;i.led companies have" typically ma~e the" high...:.volume. 'smooth shank. nails, and smaller firms have concentrated' prOduction in 'higher priced nails ·ce.g., those havin9· -:specfal ·purpose head's, shanks,· poin~t8, or finishes). · . .. . . .. •" . .. . . ~·.. . . . . . . . Ir.t:recent year·s most ··of''ttle· lar9e.· integrated ..steel producers have ceased pr·1;,ducin9·"nails:" 'For ·~exampl~, 'u.:s. Steel c~as~d'.pr_oduction. in. 1981, and Armco and· Bethlehem cease"d:- nan producti'on in 1983. In 1984, the largest U.S. pro- ducers were *' * *, * * * and * * *, * * *· CF&I, the remaining. integrated steel .producer manufacturing ~ails, was ~ ~ ~ in 1984. The major U.S. A-7 producers and their share~. of production in 1984, as reported in question- naires, are presented in the following tabulation: * * * * * * * U.S. Importers China. Miller Supply Corp., of White Plains, NY, a large distributor of hard-. wan~, 1~ the largest importer of nails from China, accounting for * * * per.:... cent of such imports in 1984. It purchases nails, both domestic and imported, * >< *, ·sho~n in the following tabulation: * * * * * * * The bulk of the imports from China, .according to questionnaire responses, are electrogalvanized and hot-galvanized nails, which combined account for * * * percent of imported nails from China, as· shown in the following tabula- tion: * * * * * * * Poland Borneo Sumatra Trading Co., Inc., of New Jersey,. is the exclusive U.S. importer of nails from Poland·. In 1984, * * * percent. of its imports were bright common nails, and * * * percent were cement-coated nails * * *· Yugoslavia The largest importers of Yugoslav . nails in ·· 1984 were * * * (>< X· * percent) and M· * * (* * * percent). Virtually all ·of the nails im- ported from Yugoslavia are bright .common nails. The Foreign Producers Eleven ·firms produce nai)s · in China, seven of which produce for export. T~1·~ ~xportation of virtt.1ally all of the nails produced in China is contr9lled by the China National rtetals & Minerals Import & Export Corp. (Minmetals). According to informatiqn provided by Minmetals, Chinese production of nails increased by 10 perc~nt from 1982 to 1984 (table 3). Utilization of A-8 productive capacity was 89 percent in 1982 and 91 percent in 1983 and 1984. In its postconference brief;. counsel for Mir1111etals stated that··-- The American Metal Market reported on February 3 of this year that the PRC is undergoing massive con- struction in the hotel and housing sectors. The C•)mmi ss ion historically has recognized that sales of nails are closeiy related to the performance of the housing industry .. With this grow:in•J d•~mand for nails in China, there is little likelihood that imports of nails fr·om China wi 11 be sufficient to pose a threat to the United States industry. Table 3. -Certain steel wire nails: Chinese pr•)duction, capacity, and exports, 1982-84 Item 1982 1983 1984. . .. . .--·-·---................--.....................-.......-..........- ................... ,_.. , ................ __.____,,____ .,, ..........._, __,.. ,.. ,. __..,....... ,______ .. __ .................................- ........................................................ . Production :V--....·l,000 short tons--·: Capacity ]/··· .. .............. ···· ..............-do .........-: Capacity utilization !/-·-percent-.... ; Exports to: 639 716 89 672 739 91 705 771 91 United States-·1,000 short tons-: 29 50 44 A 11 other.... ··· ·· ·· · · ···· ········ ....... .....·--do .......... __ : .........................~.~ .... 93 : 77.................,................. ,, ... ,. ' .................... ,..___ , ..,_Tota 1-..........- ..........................-- ...-..........--.. do--·---.. : 121 143 121 Exports to the United States as a share of production---percent--: 5 7 6 ..,, .... . ... ,........ .. ......................... ~- !/ Steel nails over 1 inch in length. These nails account for the bulk of Chinese production. Source: Compiled from data submitted by counsel for the China National M~~t:als & Minerals Import & Export Corp. Exports of nails from China. to the United States increased from 29,000 tons in 1982 to 44,000 tons in 1984, or- by· 52 percent. These exports ac- counted for 5 to 7 percent of total ·Chinese nai 1 production during 1982-84. Minmetals projects that it will export between 55,000 and 61,000 tons of nails to the United States during 1985. The U.S. embassy in Beijing reported that ]/.- There ·is little relationship between 9verall domes- tic production and exports. Production for export is tailored to the market. This is particularly lnrn of the U.S. and Canadian markets. Nails pro- duced for these markets are produced according to different specifications and hence, there is no spillover between domestic and .export markets. ... ....-... . ........ •···~·-·""""' . ..... _, ............. .. V T.eleg.ram from the U.S. Embassy in Beijing, summarizing a meeting with officials from Minmetals, July 9, 1985. A-9 In addition, Minmetals has informed the embassy that "China has tried to avoid exporting categories .which U.S. producers produce and has concentrated on those where U.S. production is small." As a result, China's exports are concentrated, for example, in electrogalvanized roofing nails, which account for a small portion of total U.S. production. Three firms produce nails in Poland. They are Zaklady. Przemyslowe "l<omwna Paryska" W Rci.clvmsku,. Zaklady Metalurgiczne "Polmetal" Y Salkowie, and Fabryka Dru tu I Wyrobow Z Dru tu W Gliwicach. V According to information n~c(dved from the U, S. (~mbassy in Warsaw, only the first factory presently manufactures nails for export to the United States. The embassy reports, ho1.tr- (~ver, th~l: by y1~<:~n~nd, part of the U.S. !:11:.iunJ production.is exp~~cted to be shifted to the other two factor.ies. Polish production of nails increased from 101,000 tons in 1982 to 106,000 tons in 1904, <)r by 5 pet"cent (table 4). Capacity to produce nails in Poland increased by 9 percent during the pe.riod, and utilization of this capacity has n~mained fairly· stc~ady: 76 percent in 1982 and 73 percent in 1984. Table 4 .-..·Certain steel nails: Poli sh production, capacity, inventories, and exports, 1982-84 Item Production .......................-1, 000 short tons-·-: Capac it y- ..·-·-·-·----..................................................._..,,_do--·-- : Capacity utilization·· ··· ..-percent·-: Yearend inventories-..·--·l, 000 short tons--: Ratio of inventories to production ............................................... --percent-: Exports to- .. United States-1,000 shor·t tons·--: Western Europe !/----do--: Canada ..................... ·· ·· ... · .............. ....... ·-do............_: All other----·----·--do--: 1982 1983 101 103 133 138 76 75 4 4 3 4 11 21 8 5 l 1 14 9 1984 ~06 145 73 3 3 26 9 1 7 --·-··-··- ..- ........---....,... -·------·-····-Total ···· ......................... --do ..--..·-: Ratio of exports to the United States to production .... -..-percent-: 34 11 ----······--·--·---·-.. ···• --·-·----·--------.!/ France, the United Kingdom, and West Germany. 36 43 21 24 ----'--·-·-····----···--- Source: Compiled from data received from the U.S. Embassy in Warsaw. !/ Information on the Polish .;·a-iI 'i'ndust'r'Y:''"was obtained''" fro'ffi' a""teTegram from the U.S. Embassy in Poland. The Embassy reported that it had obtained this information from the Polish foreign trade organization, Universal Co., Ltd., the sole exporter of nail~ to the United States, . A-10 nw United States is Poland's largest export market for nails. These ex- ports increased from 11,000 tons in 1982 to 26,000 tons in 1984, or by 136 percent. Exports of nails to the United States hol.V(~ accounted for an increas- ing share of Poland's total nail production. This share rose from 11 percent in 1982 to 24 percent in 1984. The U.S. embassy in Warsaw projected that production, capacity, and ca-· pacity utilization of nails in Poland will not change in 1985. The embassy further reports that Poland plans to export 21,000 tons of nails to the United States in 1985, or 19 percent below the lQvel of ex~Jrts in 1984. Yugoslavia Three Yugoslav nail producers export nails to .the United States. One producer, z~~ lezarna Jesenice, accounts for the bulk of th0 <~xports to the United States. Virtually all of the Yugoslav nails imported into the United States are bright common nails, which, according to' importers, are alleged to be of poor quality. Problems with these nai 1 s include off-center heads, bent shanks, blunt points, rusty nails, and poor packaging. One large importer re- ported that Yugoslav nails frequently arrive weeks or months after the scheduled delivery date. The U.S. Market Steel wire nails produced in the United States are generally sold first to distributors and then to wholesalers and retailers, which in turn sell them to the ultimate consumer. Nails imported from most foreign sources are initially sold to sales agents and distributors before following the same dis- tribution channels as domestic nails. The distribution channels are not clear cut; ~:1 ..11ne .i.111port:er.;, fi..1r· (~xampl(~, al~w pur·cl·k1se nails fr;om domestic producers, and some domestic producers sell directly to retailers. Several producers also import nails. The Sivaco Co., the parent fir'm of Atlantic Steel, Florida Wire, and Virginia Wire, * * *· No U.S. producer is known to import nails from Poland or Yugoslavia. Because nai 1 s are heavy and costly to transport long distances, most shipments are made to customers located within 500 miles of the producing plant or port of entry. Most nails are consumed in the building construction market for purposes such as joining structural m~mbers, assembling millwork, and securing various materials (e.g., flooring, drywall, exterior siding, trim, roofing, and paneling). The remaining nails are consumed in the industrial market (where they are used in the construction of pallets, boxes, and other containers) and in the furniture-manufacturing market. Imported .and domestically-produced nails of a speci fie type are generally fungible, and few end users are aware of the country in which the nails were manufactured. Apparent consumption Apparent consumption of steel wire nails increased steadily from 810,000 tons in 19·82 to 1.1 million tons in 1984, or by 39.6 percent (table 5). A-11 Consumption declined, howe.ver, by 12.6 percent in January-March 1985 compared with that in January-March 1984. U.S. producers accounted .for 65. 9 percent of apparent consumption in 1982. This share declined to 62. 2 percent in 1983 and 57.2 percz:ent in 1984. The U.S. producers' share increased in January-March 1985 to 57.4 percent compared witli 55.3 percent in the corresponding period of 1984. Table 5.--Certain steel wire nails: U.S. producers' domestic shi~ments, imports for consumption, and apparent U.S. consumption; 1982-84~ January-March 1984, and January-March 1985 Ratio to Period Domestic: Consump-: __~c~o~n~~mption of Imports : :shipments: tion Domestic: I t. mpor s: sh1pment~E. ______. . _.,_ . ·· ······:···.. ···:............ ·,, .....:.............................~ ... ·..."==i-;<>oo .....s'ha·r:·r··'t5n,--~·---· _:;:.----Percent--· 1982 1993., ........................................... . 1984 January-March- 1984------------·· 1985 534 276 654 398 647 484 162 131 147 109 810 65.9 34.1 1,052 62.2 37.8 1,131 57.2 42.8 293 55.3 44.7 256 57.4 42.6 Source: Domestic shipments, derived from data collected by the U.S. Department of Commerce. Imports U.S. Department of ~ommerce. are compiled from official Consideration of Alleged Material Injury to an_ Industry in_ the United States statistics of the The information in this section of the report is based for the most part on data received from questionnaires. As noted in the U.S. producers' sec- ti.on, there are approximately 50 major producers of steel wire nails in the United States. The Commission sent questionnaires to 39 producers and re- ceived usable questionnaire responses from 29 of them. These 29 firms accounted for 5'2 percent of shipments, as. reported by the Department of Commerce, Current Industrial Reports,. in 1983 and 1984. In its questionnaire, the Commission asked each U.S .. nail producer whether it would be able to provide capacity, employment, and profit-and-loss detla concerning its operations on certain specific types of nails. The nails specified were bright nails, cement-coated nails, hot-galvanized nails, vinyl- coated nails, electrogalvanized nails, lead-headed nails, nails of one-piece construction, and nails of two-piece construc~ion. Of the 29 producers that submitted data in response to questionnaires,· only 6, accounting for * * * percent of· reported U.S. producers' shipments in 1994 (or * * * percent of total U.S. producers' shipments), reported that they would be able to provide such information. Other firms reported that they do not maintain separate financial, t:mployment, and capacity records for each specific type of nail and that they would be unable to provide such data, because all of the nails are produced on the same machinery by the same workers and use the same raw materials.· A-12 U.S. production, capacity, and capacity utilization Reported production of. steel wire nails increased from 244,000 tons iri 1982 to 338,000 tons in 1~0~_: or by 94,000 tons or 39 percent, and then de- clined slightly, ·by. less than 1 percent, to 335,000 tons in ,.1984 (table 6). Production dropped by 10 perc~nt in January~rch 1985 compared with that in the corresponding period o~ 1984. Table 6.--Certain steel wire nails: U.S. production, capacity, and capacity utilization, 1982···84, ·:T<}nuary-March 1984, and January-March 1985. Period 1982---------------------------- 1983-----------------'------------ 1984-----------------.,...;._----,.-.. --- January:-flarctr- 1984----------------------:--- 1985------·------------~----- Production Capacity --1, 000 short tons-- -··Y. 244 '; 338 ·: 335 89 80 49,3 460 511 160 191 Capacity : utilization 1/ Percent 39.8,... 57.2 52.4 45.0 34.6 .!/ Based on data from firms which provided both production and capacity data. Source: Compiled from data submitted in response to questionnaires of the U.S. International Trade Commission. Production capacity increased steadily from 493,000 tons in 1982 to 511,000 tons in 1984, or by 18,000 ton's or 4 percent. Capacity continued to increase, by 19 percent, i~ January~rch 1985 compared with that in the corresponding period of 1984. Capacity utilization increased from 39.8 percent in 1982 to 57.2 percent in 1983 and then dropped to 52. 4 p~ffcent in 1984. Capad ty utilization further. declined to 34.6 percent in January-March 1985 compared with a level of 45.0 percent in the corresponding period of 1984. U.S. producers' shipments Data on U.S. producers' shipments were obtained from the Department of Commerce, Current Industrial Reparts. These data.!/ indicate that U.S. pro- ducers' domestic shipments increased from 534,000 tons in 1982 to 654,000 tons in 1983, or by 22 percent .. Shipments then declined by 1 percent, to 647,000 tons, in 198.4; with an additional decline of 9 percent in January-March 1985 compared with the level in the corresponding period of 1984, as shown ln the foll<>Wing tabulation (in thousands of short tons): !/ Data .collected by the . U.S. Department of.. Commerce do not include nail . shipments by fabric~tors; Such shipments account ·for 45 perce11t of total shipments. Tl'le ColllDission staff has adjusted Commerce data accordingly. ,· A-13 Period·- .. ~-.- 1982·----- 534 1983. ·····················-···- 654 1984·---------------, !/ 647 . January-&rch·~ 1984-------...-.,.. ------- !I 162 198:S . .. ...._: __ .JI 147 !/ .. Estimated by :·the staff of tt\e u_ ..s. International Trade Commission, by uxt,..~polating ftom question!"aire· data.. :. . 7. Shipment data w~re aho compi'led f.rom que~tionnaire responses. These shipo1(mt~ accounted for 49. percent of shipme.nts reported by Commerce in 1982, for 52 pe.rcent of such shipments in 1983... and· for 53 percent in 1984. Accordirl•j to questionnaire data, .,U. s. producer~ I domestic shipments increased froin 264,000 to.ns ·in. 1982 to· 342,000 tons ·iii ~984, or by '·30 percent. Shii;r- ments then deci'ined ·by. 8 .. "percent ... irl January-&rch 1985 compared with those in the· corresponding period of 1984; These figures are shown in the following · tabulation (in thousands of short tons): Period --,-----..---1982-· 19831~------------ 1994......... January-March-- 19841------------ · 1~95 ............................. .. Quantity 264 342· 342 ·91 84 u', s. producers were" a'i so asked . to sup.ply . shipment data by nail type or . finish for 1984, as shown in the following ta~ulation: ! .: 1 ~ ,, Percentage distribution of .!!!..,. shipments 1-piece: . Bright: .Commo~-::--:-:---.,-.---,.--~--- Other · ·:·....···--···-:· Total . . Cement-c9~ted: Sinke~~ _ .. ·:(· Ot~~~;·1-.:· ·~ ..:: ··;:··::·:....'. ..:..·:..·:·_..:·: .....>..:--·---~.,.: ......:.......:..... Hot galvanized··· .. -.... -----.................... __,..._-.----- Vinyl coated1------------- : E lee troga l .van i~ed-.... ~:·· .. ·-.. ;;·:...:·--·-·-.-.-,--- .Other: 1-piec~-. · .... _. ·· · · Subto~l ,:... ' ::..,...... : .............................:·::··:i.. ,.....---.,.--- 2-piec~,.....------------~------- 12.6 lS.S 28.1 19.9 ~ 29.·3 17.7 .4.2 4.7 13.6 97.7 . 2.0 Lead-headed· · ..........................-....................- .. -·-..·-- __JL1 Grand total.~---------------- 100.0 A-14 Exports we~e .;;nall throughout the period, ~d~ounting for less than 1 per- cent of shipmen.t~ in· e_ach per~.od. .· \ ·. ~ , . .. U.S. producers''inventories End-of-per.i9ct ,inven.tories of steel wire ~iis covered by the investiga- tions increased from 32,000 ·tons in 1982 to 37 ,000 tons in 1984, an increase of 16 percent (table· 7). Inventor:-ies continued to increase by 3 per~ent as of. ; ; ~ • • • ; • r '':", • • • . ··"?-. ' . • ·- . ... ~ •, •• ' March· 31,. 1985, compare~ ·with inventorie·s on March 31 ~ 1984. · As a percent of shipments, inventories dropped from i3-.8 percent· in' 1982; to 'l3.5 ·percent in 1984. Inventories increased as a percent of shipments· in January~rch 1985 to 12 .. 8 ... Per::cent, . com~r~ w.i 1=h 11,- 7: percerit in the correspo.ndin~ period of 1984. .. . ·~l " • '· ' . . ' . • •• . ' .. . . . ).' .·.• •,._ .•·\. Table. 7.-.-.. Cer'tai.n ·steel.wi~~ naih.: ..U.S. produce:r.s•'. end-of~peri_od· in~entbries . , . and,, shipments,' i.982:-84,. Jq\nuary~rch i9e( 'and Jahuary~r-2h 1'9'85r - • • • • • ,,. • · _.\ " • • r , . • • • .• • :;.. • • , ~ Period •• t • Inventodes :: . . . shi'~ents '.Ratio of.. <• •.• •·. : inventories to. shipments 1/.............. ,., .•. , ..,, ___ ....................., .....,.................. . . .I I. I ·......-.........................:., ...:.....-·-===1~000....·irfiort....fotis=- ·· Percent ·• .,, 1982 . ' . 1993 ...................-.....-......................... .:....:....... -.:.. _..__ . ·----- 32 •' 264 13.8..-· 35 : 342 12.3 1984-·-------------- 37 : 342 13.5 January~rch-. 1984------------~ . . 35. .. ~ 91 ~/ 11. 7. 1985-·-........ ' ............................. . 36 : 84 ·1:1 12.8 )J These lJgun:.!s are, for o.nly firms tl:la~. provided data . on both inventories and shipments.· . .. . 1 · · · ·.. · · · ~· , .. · ·;. 1:1 Based on annualized shipinents. Source: Compiled from data submitted in response to questionnaires of the u. s. Internat iOnal Trcidi{co'mmis s ion. ·'• r ~ v > ~ Employment and wages The number of workers· employed in the production· of certain. steel wire n~ih increased. 'from 1,069 in 1982 to 1,241 in 1984, or by -16 percent (table 8). The number of production aiid related.· workers ~eclined by 12 pe~ cent in January-41arch 1985 comi>ared with .employment·· fn ··the corresponding period' of 1984. ~The· number· of hours W<>rked by· these workers increased by 25 percent from 19e2 to 1983,· and then dropped by less· ttlan 1 percent in 1984. Hours worked then fell by 13 percent in Janual'.'y--f'llilrch · 1995. compared with those in the correspol'lding period of _19.84. ·... : . ... ...· · · Ave"age hourly wages dropped from $10·: 48 in '1~982 t~ · $9. 90 in 1983, and then iricireased · t.o $9. 98 in 1984. Average hourl~ wages' "increased again to $10. 21 in January-11arch 19.85 compar:.ed wi ~h $9.• 92 iii the cor.r..esponding period of 1984. · - - - .. - · ' : · · - *-•.• '"" .•. :,. :. ...,'.> ' .. '· Ta~>le 8. ··A1Jerage n•A•ll!:>er of PF'.Qductic;>,ri and _related w1)rkers :engaged in the manuf~ct_ure qf· certair steel...":'ire;pails, h<;11~r:s.worked by such workers, wages paid,. and total .compensation, 1982-b4, January-~arch 1984, and January-~arch 1985 . . ·. . .. -·-------·-·-"'----------- --------------- ..·-------··· Period Number of H··- k d : Hourly : Total hourly ours wor e . . .............. · :...... ~.«:?.r.K~.r..~-- .. :: .......... :.................. -..... ···--·····..=··--·-~~9-~...!.:.~!.!;I_ ...::_:_s.9_m_P.!_Q.~~ ti on Thousands · · 198 2-~ ......... -,-·-"··-·--:----:-: 1,069, ,: . . ; 1., 757 .$10.48 $14.09 1983 . ···~·"···"······-:. t:238 : 2,202 9.90 13.65 198 4---..·----~-:-········- ..--......,.~ .; : ..t.,~41 ; 2,197 : ·9.98 13 .68;: ~anuar-y- ..-March -198 4----........--.......... ___ : 1,274 604 9.92 13.81 1985 ~ . " ; ~ f. L 121 525 10.21 14.43 '· ._...;._-..·--.·-·..:..........._:... __. __ .!~-·····:.._ __ ...... -: ....:~_ .....!.__....... ~...": _______ ,.. _: ____:._...______: -·-·······-·-··---·-..·-- Sour·c(!: Compiled rnJm dat:a submitted in re'sponse to questionnaires of the U.S. International Trade Commission. The 13,roductivi t_y of the .workers engaged in the manufacture of nails in- . creased by 18 percent,' from 0. 11 ton per h9ur ir. 1982 to O. 13 ton per hour in January-March 1985. · Total labor costs ·per· ton decreased during . the period by 16 percent, from $140 per ton in 1982 to $118 per ton in J'anuary--March 1985 . . The increase in productivity :can be attributed, in part, to the . increased ·utilization of nai'l production facilities. Such utilization rose from 40 per- . cent in 1902 to 52 percent in 1984. . Sixteen . firms provided information on the unions that represent their workers. Nine reported that the nail workers were not unionized, and four re- ported that their workers belonged to the United Steelworkers of America. Other unions named were the Internati.onal Brotherhood of Electrical Workers (one firm), the Independent Steelworkers Alliance (one firm), and the In.terntiltional 13rotherhood.of Teamster.s (one finn).: • ~ • • •> • • : ·.Financial experience of U.S. producers • 4 J . . • . • .· : • f • - • • ~- • Thirteen firms 1/ furnished usable income~nd-loss data on both their overall establis~me_n( operati~~s·.,an.d on the·i~ ·ope.rations producing wire nails dur)ng 1982··-83. One. of..ttu.'!· firms, * * *, . ceased production in 1983. There- fore, the _inc:ome-and-~9ss .data. for 1984 ill.net the interim periods are for 12 :c111)d1..1t.::~r·s. The. 12 ,f.tr:"~ ('l.~(.-olmt~d for 3S · per"cent .of estimated 1984 domestic s,hipments of steel wire nails: covered by 't_tie -~nve.stigation. . . Q.v.~.r~U ....~-~-'~~.!:!.ii~J.•m.~.n.t,9per,~-~-~-9 1 ~s .. ··-N•O!~: ~·a!es i:>f all products produced in · the establishments within which steel wire nails are produced decreased from $1.4 billion in 1982 to $1.2 billion in 1983, or by 18.9 percent (table 9). Sales the!'l decreased by 7 .1 percent, .to $1. 1 billion, in 1984 * * *. During th~ interim period ·~nded Maret)· 31,1 : sales ·de~reased from .$299. 3 mi 11 ion in 1984 to $2]4.3 millio'n .in 19~5, or. by 8.4· perc~nt: ..... ____..__ --·-·-···-· -····-····--··· ... _.......-..... ····-----·······.. · ....... .............. ............... ..._.. ···-·····-······..·--·-······· ........... ··-·--- ~/ The firms are * * *· A-16 Table 9. ·--Incom~-"'and!...loss ··experience 'of 13· u: $: producers. on the· 1'.>v~1rall operations of their est~bllshmehts wi~hin whi~h c~ftain.~te~l'wire h~il~ are p~odu~~d~ · · .:\ccounl:.i.h•)"yoars 1982--8-\ a:nc:f'ir1t~r-im p~~r.. iods 1 (mded Mar.· 31, ·1904, a;·1d. Mar. 31, 1985 ·'Item 1982 1983 1984 Net sales· ---1,ooo'dollars .. ··-:1;429,744 :1,159,254· :1,077,454 Cost of goods sold-··'·~·-·· .......... do-·:..--:1;500;656 :1,242,633. :1,077,150..: Gross profit or (loss ) .. ·-do ........... _: (70, 912): (83, 379): 304 General, selling, and · · administrative - · Interim period --- ....~nde<Lflai:...:__J 1-::::......... .. 1984 1985 299,311 :· 27~~295 300,522 : ...?75,20~L (l,211): J ·~910) . ; ~ expenses-.................... :..............:....... -'--·-........ do- ............... : -~..-..l!LJ67 _.;._......... 771329 ·__;, 51, 897 ..;. __........JJ..t.799 ·:_...J.l..tJ.l!Z_. Operating (loss) · .......do···---·: (154,079): (160,708): (51,593).: (15,010): (14,897) Oep.:-eciation and amort'i·-· "· :-. ' · · . 1.ation ·do 81,711 76,331 .. 43;639 As a share of net sales: Cost of goods sold 'percent...:...... : Gross profit ·or (lossf--do ....·-: General,· selling,';· -· ~- and adminlstrativ, 1 expense s.:....:·----·---...........- ...:......d o!.:..... ..--. :: Operating (loss ) .................. '···-·-do .. ·~·":........:..·: Number of firms reporting operating losses-·· ..::..................._·_...;:___·: ~ Number of firms"reporting ... :........ _ .. :-_ ' ':io5" :'ii .. (5.0): . ~ 5·, 8 ., .. (10.'8): ' 11" . ' ' 13 1°()7', ~ . (7. 2).: 6.7 : c13.9r:' . (r • ·7 '':. ' 13 :: .. . ' . 100.0 : '' j/ . :. '4.8 : (4. 8): '10,'895;: "100. 4, JO. 4): . 4',6 . ' (5;0~: ' . ll, 304 100.3 .(0. 3) 5 .1 (5.4) '" "6 -': 8 ·,, 12 :" . : l, 12 ·. ) •: ~ ... ;_. . . .----------..··--··-··-.------,---........... ___ ............--·-·-·-.. JI Less than O. 05 percent. · ~ r, · • -'' . ...·"'""..-..--...........-·c-·-..............-,-- ..·-· •; '. .··.1 .·· ;•; Source: Compiled. from data ·submitted in response to quesUonnaires of the · u. s. InbH"national Trade Commission . .The firms suffered an aggregate operating loss of $154 .1 million in 1982, or 10.8 per'i:.1,~nl of mlt i1ales. I"n· 1983, the: a13yt 1 (~9ate operating loss· ·increased to $160.7 million, or' 13.9 percent "of net' sales, th~n 'decreQs~d in "1984 'to .. $51.6 'mill"ion, o.r 4.8 p~rc'ent of net sales. Dudn9 the 'interim'' period er1ded March 31, the operating loss' decreased sliglitly, from $15.0 'million. in 1984 'to $i4.9 'million in 198'5." 'The inter'im period operating loss margins were S.O p'ercent in 1984 and 5. 4 percent in 1985. ·Eleven· of the· 1'3 producers reported overall operating iosses in 1982 compared with 7 of 13 in 1983 and S of 12 in 1984. During the interim period ended March 31, ·operating losses were incurred by· 6 firms· in 1984 and by 8 firms in 1985~' ",, ...... Operations on certain ~tee;l wire nails.<--Net sales of' steel· wire na·ils in- cr·eci.~Qd from· $118.2 million in t982 to $137.0 million in 1983,· <fr by lS.9 percent, and then increased slightly, to $13tL1 ·million in 1984. (table '·10). During the inter.in! p~dod ended March 31, sale~ declined from $31.3 mill.ion in 1984 to $32.1 million in 1985, or by 13.9 percent. A-17 Table 10.-Income-and-loss experience of 13 U.S. producers on thnir operat.ions producing certain steel wire nails, accounting years 1982-84 and interim periods ended Mar. 31, 1984, and f".'lar.. 31, 1985 .. Interim period Item 1982 1983· 1984 ended Mar. 31- .. : 1984 1985 Net sales---···-..-1, 000 dollars-: 118 ,201 136,990 138,091 37,251 32,086 122,158 134,286 136,927 36,934 33,618Cost of goods sold- ..........---do-·--: _......_"-'-'~--~----~..;;..._--""".-.;....o..;;..;~~----'_,______..____ Gross profit of (loss)--do-·-.-: (3,957): 2,704 ~ .. 1,164 317 (1,532) General, s~lling, and ·' .· administrative. · · : 16, 124 10, 123 9,828 2,466 .. 2,649expense s--·--·-~·--..---·--·-..do--·-: --~----~-~---------..........-·-~-~-- Operating (loss ) ..................--do---: Depreciation and amorti- zation .! /- ..·----..-·---...............---do---: As a sh~re of net sales: Cost of goods ~old percent-···: Grqss profit or (loss)-do-: General, selling, and administrative expense s-.............- ....- ....--·-·--.. d o- ........ _ : Operating (loss ) ............................-cJo-: Number of firms reporting operating losses:...._·..-·--..-·----: Number of firms reporting·--·--'·-'-: (14,081): . l, 859 103.3 (3. 3): 8.6 (11.9): : 11 : 13 (7,419): 2,263 98.0 2.0 '· 7;4 '(5:4):. 9 13 (8,664): 2, 197 99 .. 2 o .. 8 7.1 (6. 3): 9 12 (2, 149): . 609 99.1 .o.9 : 6.6 . (5.8): 9 .. 12 (4,181) 463 104.8 (4.8) 8.3 (13.0) 10 12 .!/ · 4 producers did· not provide depreciation and .amortization expense for 1982-83. 3 producers, which together accounted for about 19 percent of sales in 1984, did not provide such expense in 1984 or in the interim periods. Source: Compiled from data submitted i11 response to questionnaires of the U.S. International Trade Commission. The aggregate operating loss in 1982 was $14.1· million,. or 11.9 percent of sales. In 1983, the operating loss decreased sharply to $7.4 ·million,'.or 5.4 per- cent of sales, and then grew again i11 1984 to $8.i miHion, or 6.3 percent of sales. During the interim period end·ed '.March 31, · the operating loss nearly doubled, .from $2.1 million in 1984 to '$4.2 million in 1985. As· a share of net sales, operating losses in interim 1984 and 1985 were .5. 8 and 13. 0 percent, r'espec:- tively. In 1982, 11 of . the 13 producers reported operating losses compared with 9 of 13 in 1983 and 9 of 12 in 1984. In the interim period ended March 31, 1984, 9 of 12 firms reported operating losses; in interim 1985, 10 of the. 12 firms reported operating losses. A..:..19 The Question. of Threat.of 'Material Injur.Y .. tn its examination of the question· ·of a .. · reasonable·· indication: of the threat of material injury to an industry in the.United States, the Commission may take into consideration such factors as the rate of increase of the alleged LTF~ imports, the rate of increase. of U.S. market penetration by such imports, quantities of such imports held in inventory in the United States, and the· capacity of the foreign producers to gel')erate exports Onclud.ing the availability of export markets other.than the United States). Trends in imports and U.S. mar~et penetration are discussed irt the sec·- tion of this report that addresses the causal· relationship between the alleged injury and the imports that' are allegedly sold at LTFV. Av~i1abl~ information regarding the capacity of the foreign producers to generate exports is pre- sented in the section on the foreigl'l producers .. No information is available concerning U.S. imporiers' inventories .6f.;nails fro~ China, Pdland; ·and Yugoslavia. * * * '· '. :• According to ·the petition, as a result of the VRA with Korea, imports of nails from Korea will decrease by 50,000 to 60,000 tons per year·. "The peti-· tioners assert that LTFV imports from China,· Poland,. and Yugoslavia threaten to capture a significant portion of this ·tonnage. See ~he·s~~tio~ of ~~is·r~- · port on voluntary restraint agreements for further details. ·: ,. :· .. U.S. imports Considerati9n of the Causal Relationship Between Alleged Material Injury and· Allegedly LTFV Imports .. : U.S. imports of the nails under investigation enter under ... items. 646.25, 646.26, 646.30, 646.32,. and. 6.46.36 of the TSUS. ·whereas most:· of ·the 'imports entered under i terns 646. 25 and 64.6 :.26 ·are · naHs.· .that are the· subject of the.·:· . investigations' .· som.e brads' tacks' spikes; and. staples that are not under ~ investigation al so enter under these i terns. These two i terns account fo~ the bulk of the imports under investigation-. The remainder of· the nails that ·are under investigation enter under items 646.3040, 646.3200, arid ~46.3600 o~'th~ Tariff· Schedules of the United States Annotated (TSUSA). These items include a variety of nails that are not subject to investigation. Total imports under these three items, howev~r. are small. Because the offi~ial imp6rt statistics include merchand'ise .that is not subject to investigation, the data on imports of nails presented in this report are slightly overstat.ed. · Total imports of· nail.s increased from 276,000 tons in 1982· to"484,000 tons in 1984, or by 75 percent (taple· 11). Total imports subsequently de- creased by 17 percent from January-March 1984 to the corresponding period of 1985. The largest exporters of nails to the United States in 1984 were Korea (43 percent), Canada (15 ·percent), Japan· (.9 percent)', and China (9 percent). Poland and Yugoslavia accounted for 5 ·and 3 percent, respectively, of ·total· imports. increased from 29,000 tons in 1982 to 50,000 to 44,000 tons in 1984, or 52 percent above Imports of nails from . China decreased by 29 Imports of nails from China tons in 1983 and then decreased the leve 1 of imports in 1982. percent from January-March 1984 to .the corresponding period of 1985. A-·-19 Table 11. ····-Certain steel wire nails: J./ U.S. imports, by principal sources, 1982-84, January-March 1984, and January-March 1985 ....;..................... . Source Korea-.......................--~·-·-·-..................... __.........----···r : . Canada .· Japa~--.. ·····----...-..........~ ....................... _:.- ......:........... _, __ .... : China Spain--..··-·····----................... _____ ._...........-- ... - ............. : 1982 107 74 22 29 19 January-March .. ···- 1983 1984 1984 1985. . .. . .. ................................. ....................... __, ..................- ...---············..----.. -·-- Quantity (l,000 short tons) 157 77 33 50 17 207 71 44 44 29 60 16 12 14 5 50 17 8 10 4 Poland· 10 21 24 6 7 Yugoslavia-- .. ··--·-·-..--...-........................ - ...--·: 10 12 13 4 3 Romania 11 4 13 3 3 Al 1 other--··---.......... ______ : _,___.. _.. _L_... _. ___....?L..:........--.....JL..:._., .....---·----!.L..:._.....----··-·---···z. To ta 1 · .... ··· ·· · ....... ·-: ._?..:?..§ ....:.... .. ...)..~-~ ......:....... . ... -..4..~.4... ....L..... . ...... _J..H .....:... .. .. ...- ... J-9..2 Korea-····--- --·--: Canada ··· ·-· .....- ...... Japan----..-·.-·..·-·········-··-··-··-·-·-·-···--·-.--: China···· ··· ........................ ··· · ........ __ : spa in--- .. ··---·-··-.............. _.._ .. __,,,_................. _.. ___ ._ : Po land· · · · ......................... · ................ _: 53 45 16 13 10 4 Value (million dollars) 75 50 23 22 9 7 105 46 33 21 13 8 30 10 8 7 2 2 21 10 7 4 2 2 Yugoslavia-·--.,-·-..·----·-----·..··---··--: 3 4 4 1 1 Romania · .... .............. -: 'll 2 4 i 1 A11 other---···-------·-··--·---·-- : _:.... ---··-··L_-...-... - .........!.L.:__ ..........-.......?1._!___ .. ____ ...........L:..........----·-...................i Total ....1?9.. : ....?.9.? .....:....... .?..?.? ......:.... ... .....~..!... :......................... 52 Korea-- ·-------: ........................................................................ _._:Canada······ Japan--·--....,.---- ..--: China1--- ·----···--..---·-········---: Spain--~---·---~--- Po land· · · ···· ....... ___............... ·· ................. _ Yugoslavia---.--·----- Romania· .. · ... · ............. ··· All other--- Total P1H·cent of total quantity 39 39 43 46 46 27 19 15 12 15 ~ 8 9 9 8 10 13 9 11 9 7 4 6 4 3 3 5 5 5 6 4 3 3 3 2 ~/ 1 3 3 3 ____ ,___.L_,_..,__L.:___......... _____ ..7-__!___.... _, ___,... _L!_...... -.. ----·~ 100 : 100 : 100 : 100 : 100 I I I t I ------ ..-·--·---·.. ---··--·---·-·-··--...................!--··-·----··-· ....--·_____,,._.,,_,___.___,_,,, ............ _. ___ .............. _ J/ Includes imμor·ts entered under the following TSUSA items: 646.2500, 646.2622, 646.2624. 646.2626, 646.2628, 646.2642, 646.2644, 646.2646, 646.2648, 646.3040, 646.3200, and 646.3600. ~/ Less than SOO short tons. !/ Less than $500,000. ii Less than 0.5 per- cent. Source: Compiled. from official statistics 9f the U.S. Department of Commerce. A-20 In 1982, the year of the Polish dockt1,1orkers' strike, imports of nails from Poland totaled 10,000 tons, or 63 and 62 p~rcent below .the le ">.l' of im-- ports in 1980 and 1981, respectively, as shown· in the·· follow'ing. 'tabu. . >n ( ~:1 thousands of short tons): Quantit~ 1980 27 19 81--··---···..···-··--.-·····-··-·--···-·.. ····--·-..-····-··--·-···---··---- 26 l 9 8 2· ...... .. ................ .... .. .. ................. _.,_ .. __ 10 1. 9 8 3---..···--··-..·--····-··----·-····--.···-·····-·-·-- 21 19 a4 ···· ·......................... · ............. - 24 In 1983 and 1984, imports from Poland recovered to 21,000 and 24,000 tons, l'"•'~sp(~ctively. In January.. -March 1985, _,such imr.J1Jr·ts increased by 1,7 pe(-·. . . .... ···, cent over the level of imports in the corresponding period of 1984. . .~ .. . . Impor·ts of Yugoslav nails r-ose from 10,000 tons in 1982 to. 13,000 t9ns 'iri· 1984, or by 30 percent. These imports subsequently. fell by 25 percent dur~ng the January-March periods. · Information concerning the customs districts through which nails from China, Poland, and Yugoslavia entered the United St.ates. during 1984, as com-! . ?, :i :~ pi led from official stati sties of the U.S. Department of Commerce, is pr:e- S(Hlted in the fol lowing tabulation ( ir~ percent): · · .,.,. · ',~., ....... -·--·--·--·--...·..·--··--·····---···-·.. ········--··--·········---···· .. ··-;·sh.;;:e·····;;i·········---·-·······..................................-.............................................-- ..·---····-··.................;..s·h;~·~·~;ri·f·-··· ··, Country and customs total Country and customs total ··-·v district district .!.m.P..2.r.:J_~ .. :.:. · im.eorts·.. .. ....- .............:-·-··""'"" .~ China: Poland: New York, NY-··--··········-····--·--·-·..········-··---: 17 Wilmington, NC-·--·----····----·---: 36 Houston, TX ·· · · ............ ·····- 13 Mou s ton, TX· ................. ·· ·-······ ....................... -- : 17 Ph i 1ad e 1 ph i a , PA--·-··--····-·-.. ·-··-···-· : 11 Savannah~ GA--·-·------·-----··-·-: 16 Bos ton, Mfl· 9 Tampa, FL · ·· ..............-........................ _ 12 · New Orleans, LA-·-......... _.........-···-·--: 9 .. Al 1 other--·-·-·-·----·-·····..---: ____ .__1_9 Los Angeles, Cfl· · ....... · ..... --- 8 Tota1 ..... 100·. "Miami, FL-----------: 8 Yugoslavia: Wilmington, Ne ........................................·--: 7 New York, NY· ..... .................... ·-·-····-··-: 67 A11 other-------·-·-·-·-----.... ··-···-- : -··--·····-·-·-1_8_ Miami, FL--·-----·----..·-: 16 Total 100 All other-·-·-· ........ ·· ................................:: ..... _: 17 Tota 1-----·-···---·------: ==~···100 ••: I U.S. market penetration Market penetration of imports from all sources '·increased ·from' 34 .1 ·per- cent 1Jf con~1J1nptii:m in 1982 to 42. a p1!rcent in 1984 (table 12): Market ·pene-'- tration of imports then declined to 42. 6 percent in January-March 1985 com- pared with 44.7 percent in the corresponding period.of 1984 . . •. A--21 Table 12. ····-C(~rtain steel wire nails: U.S. i:woducers' domestic shipments, U.S. imports by selected sources, and U.S. consumption, 1982-84, January-March 1984, and January-March 1985 - ..--...-··---····-··..·····--·-·-....--·---...·-----··-·..·..---·-···--.... -_ ......... --·-·------···....._,, _____, ........ _... _................................... U.S. Period :producers' domestic China :Poland Imports from-- 'c . .... ...... ·-·-...... _... _ ............ _. : on sump ..·· : y 1 . : A11 : T t 1 : ti on : .... ~J:~_i..P..m~n~.~- .. :.... "u~o.s a~.~.~-;.... C?..~b.~.r.: ...;....... o .... ~. : ........................... -- 19 8 2- ........_.. ___ ,, ___,,., : 1993 ......................,...........-: 19 8 4_.. ,,...._,........._.............. : Jan ...-Mar-- 19 8 4------..·-- : 1995 ............... .. 19 8 2-- ....--..--...... : 1983· 19 8 4--·-...... ,_,_, ...................... : Jan.·-Mar- 19 8 4--..····--·-···""' : 1985 ................... -: Quantity (1,000 short tons) --·-······... -............ -.............. _............ _,__, ..................................-.........-.---·-··-·-----·............_______ .... _.........- .........._,,.,.., __ ,.,, 534 654 647 162 . . . .I 'I I I 29 50 44 10 21 24 10 12 13 227 315 403 276 398 484 810 1,052 1,131 14 6 4 . 107 131 293 . .............J47_, .. ......___!Q......;........ . 7 ..;....................... ___]__;............~..?._;..........J ..9..?.... ,..;................. __? 56 Share of consumption (percent) ----·-·-·--------....---·· 65.9 3.6 1.2 1. 2 28.0 34.1 100.0 62.2 4.8 2.0 1.1 29.9 37.8 100.0 57.2 3.9 2 .1 1.1 35.6 42.8 100.0 55.3 4.8 2.0 1.4 36.5 ·44. 7 100.0 57.4 3.9 2.7 1.1 34.8 42.6 100.0 . . . . . . .. . . . . . .Sou r::;~-~~ ...;..---9~ s c.~d""';;~;-·t~bl;·;-5-.;;:;d--11""·~r-··-thT;""'r'e'j;~'rt·~---.................._________................-.........- .........................-.......... .. Note.- .. Because of rounding, figures may not add to the totals shown. Impor·b fn>m China increased Uu::!ir' share of th!;;! market from 3. 6 percent in 1982 to 4. 8 percent in 1983; the Chinese share then declined to 3. 9 percent in 1984. The share of the market held by impor·ts from China was 3. 9 percent in January-March 1985, representing a decline from the 4.8-percent share held in January ..-March 1984. The market; penetration of im.,>orts from Poland increased from 1. 2 percent o_f consumption in 1982 to 2. l p~~r·cent in 1984. Th•:, made.et pm1etration of these imports continued to increase to 2. 7 percent of consumption in January-- March 1985 compared with 2.0 percent of consumption in the corresponding period of 1984. The share of the market held by imports from Yugoslavia aeclined from 1.2 percent in 1982 to 1.1 percent in 1983 and 1984. The share of the market held by these imports was 1.1 percent in January-March 1985, down from 1. 4 percent in the corresponding period of 1984. Market penetration of imports from China, Poland, and Yugoslavia together increased from 6.0 percent in 1982 to 7 .9 percent in 1983, and then dropped to 7 .1 percent in 1984. Market penetration of imports from all three countries declined to 1·. 7 percent in January-March 1985 compared with 8. 2 percent in January-March 1984. A-22 Prices ·. t.. !·· Several U.S. producers distribute price 1i sts but often ·di'scount from their list prices to meet competitive offers. The U.S . ..-.produced nails are predominantly sold on an f.o.b·. mHl.·or warehouse basis, whereas the imported nails under· investigation are normally sold on an ex-dock or ..~.delivered price basis. The lead time between a customer1.s. order and the date of shipment is considerably shorter for tho domestic.: nails in comparison' with that for the imported product. Domestic ·,producers reported delivery lead times ranging from 1 d~y to 6 woeks. In comparison, importers reported delivery lead times generally ranging from 3 to 9 .months. The exception· to the longer lead time for th<~. imported produc't was ~ * *· This importer, which warehouses its im- ... ported nails, reported that i~ 'sells * * * nails with an average delivery. lead time.of 3 days. ' . .The Commission requested U.S. producers and .importers to provide price data on their sales of three types of ·nails to three large customers. The three types of nails are as follows: Product 1 ...:·-16 penny bright common nails. . Product 2.~16 penny cement coated.countersunk nails. Product 3 .·-Electrogalvanized roofing nails llG x 1-1/4" x 7/16". Nine U.S. producers reported some selling price data on the products for which information was requested. The _nine iJ .. ~. producers . accounted . fo"r .· approximately 24.5 percent of total estimated U.S. producers' shipments in 1984. One importer, accounting for approximately,* ·M· * perc:;ent 9f. the t:onnage of Chinese nails under investigation in 1984, reported some price data. V Another importer, accounting for 100 percent of the tonnage of subject imports from Poland, reported prj.ce data. The single importer. th~t provided the CommiSsion with price 'de1.ta on the subjei.:t imports from Yugoslavia accounted for * * * percent of the tonnage of Yugo~lav nails in 1984. \ · ·' ' • : . 1 • ~ • _!:_>_ri~-~ .....tr.:.~f'..ldS ..... -Th~ weighte'd-ave~age n~'!t selling prices. repoirt~d by .U ..S. producers are shown for the three product specifications in table 13. The U.S. producers' quarterly price for product 1 increased from 22. 12 cents . per pound in January-March 1983 to a high ·of 24.29· cents per pot,m.d ·in April~June 1984, o.r by 10 perce.nt. The U.S. product price, then decr~ased, 15. percent by January-March 1985 'to 29. 66 cents per poun~. The domestic· pr.oduct price in- creased to 22.92 cents' per pound in April-June 1985, or by 11 p.ercent, yield- ing an overall increase of 4 percent over the period January-March 1983 through April-June. 1985. The U.S. producers' price of product 2 fluctuat~d in 1983. and 1984, .de- creasing lrregu lady from 23·. 26 cents per· pound i.n January-March 1984 to 20. 95 cents per pound in January-:-Marc~ 1985, or by 10 percent. The prl.ce then rose slightly to 21.53 cents per po1;1_n~ in Ap!"U-J~ne 1985. . j 1/ ***nails 'from China and Yugoslavia,** *·could ·not be used .. * * *_,. which accounted for )f )f )f percent of nai 1 imports. from. )f ,. ;. ' report~d ~ha~ it sells all nails of the same type at the same price, regardless of th~ country of origin. Because * ,. *, * * * stated that it could not provide separate sales price data on imports from * * * A-23 · Table 13. ··-U.S. producers' .weighted·--average net selling prices for sales of domestically produced nails, by quarters,. January 1983-June 1985 .·····-···-··· ..................ili.s..~n.t~.. P.gr:_P..Q.!!!19.l ............... :............................--·······-··········-······---- Period P roduc~ 1 11 Product 2 ZI Product 3 ~/ 1983: January-March ·······-: April-June July-September-······ ................_____ : October-December ---: 1984: January-March----·-~--· April ·-June··-·..······ ... · ..... .. ... ··· ··- ·-- .. July-September-----.-: October-Dat.:omber-···· · ...... -·-: 1985: January-~rch ··· ··· ···· · · ............._: April-June11>--~- 22.12 23.26 22.64 22.65 23.66 22.72 23.48 22.63 23.91 22.86 24.29 23 .10 22. 73 23.09 22'.00 22.87 .. 20.66 20.95 22.92 21. 53 .................................. _.... ·•· .............................._._.,... ............ . !/ Product ZI Product !/ Product 1 is 16 penny bright common nails. 2 is 16 penny cement coated countersunk nails. 3 is electrogalvanized roofing nails, llG x 1-1/4 11 x 7/16 11 • * * * * * * * * * * * * * * * * * ** * * * * * * * * * * * Source: Compiled from data submitted i_n response to questionnaires of the U.S. International Trade Commission. The· U.S. producer price series for product 3 followed a somewhat differerit trend than did the series for product 1. The U.S. price for product 3 ,. If ,. from If ,. ,. cents per. pound in * * * to * * * cents per pound in * * *, or by x X· M· percent. The pdce then ~ M· * to * * * cents per pound by * * *, or by * * * percent over the J)4!lriod ,. ,. ,. . Like the · U.S. product 1 price series, the product 3 price * * *· The only import price series in which a trend was clearly evident was that for product 1 impof'ted from Poland (table 14). Prices of product 1 from Poland ,. ,. ,. Prices per pound of· product 1 imported from Poland * * * from ***cents in*** to'*** cents in·***, or by*** percent. The import price then ,. ,. ,. by ,. Jt ,. percent, to * * * cents per pound, by ,. ,. ,. The import price then M· * * to * * * cents in * * *, or by * * * percent. Table 14.-16 penny bright common nails: U.S. producers' and importers' weighted-average net selling prices for sales of domestic product and for sales of imports from Polahd, and margins by which imports undersold/ oversoid the domestic pro~uct, _by quarters, January 1983-June 1985 * * * * * * .!:>r..i.~-~ .. ,.. ,<;P.m.l?~.r.J..!9.!1!. ·-Quarterly price comparisons between the domestic and imported nails were computed from data received in .. response to the C•JH1111ission's quti!slionnaires for' sah~s by U.S. produc~ar·s and importers of the A-24 .. · subject products. The pri.ce: comparisons. that were tabulated' with resped: to the Chinese and Yugoslavian ·produced nails are based: on ·limited import· data. The most reliable price comparisons could be calculated for product 1 from Poland. Product 1 is a common-nail specification. Common nails account for the majority of nails impo~ted fro~ Poland. The weighted-average ·net selling prices for product 1 (16 penny bright ci:.immon nails) reported by U:S. producers, and the prices reported by one im-- · porter of Chinese nails are shown with the margins of underselling/overselling· in table 15. Reported prices for product 1 imported from China· were lower · than the weighted-average U.S. price in * * * of the· M- ,. · M- quarters· for which c1..11npari sons could b(~ made. Margins of underselling ranged from 5 percent or * * * cents per pound in * * * to 8 percent or M- ,. * cents per pound in * * * and avi:.!r·aged 7 percent. The Chinese: nails were priced higher· than the· domestic niili ls in * *. * and in * * * In * * *, reported prices of U.S. and imported Chinese nails were equal. Table 15.--16 penny bright common nails: U.S. producers' and importers' weighted ..··average net selling prices for sales of domestic product and for sales of imports from China, and margins by which imports undersold/oversold the domestic product, by quarters, January 1983-June 1985 * * * * * * * Comparisons of U.S. and Chinese produced nail prices were also available for three quarters for products 2 and 3. These products imported from China <:Ht' not -:;hown ln the tabl(~s. ··Th~ reported import p'ri'ces for product 2 were higher than the weighted-average U.S .. price ·in all three quarters.' The avera•,.F~ margin of. <:>verse 11-ing was . 2 percent, or· .·M· ·M· * cents pet-- pound. For product 3, the imported Chinese nails· undersold the U.S. nails in all three quarters in which pr-ice comparisons were poss·ible by ar1 average margin of 12 percent. The margin of underselling was 16 percent, or * * M- cents per pound, in * * *, 16 percent, or * * * cents per pound, in * * *, and 5 percent, or * * * cents per po~nd in * * *· · The weighted-average net selling price reported by U. S; producers and the pr.ices reported by the exclusive importer of Polish nails are shown with the margins of underselling/overselling in table 14. ·Produ.ct 1 •imported from Pi:.i land undersold U1(! competing U.S. produced ,nails in all 10 quarters for which comparisons were available, by an average margin of 11 percent. Margins of underse-1 li n13 r·an•J(!d f r-i;m 6 percent, or" ·M * * cents per pound, in M· * * to 16 percent, or**·* cents per pound, in***· The weighted·-·aver·age net selling price r·eported by U.S. produced and the prices reported by the responding importer of Yugoslav nails are shown with the margins of underselling/overselling in table 16. Product 1 imported from Yugoslavia undersold the competing U.S.-produced nails in all six quarters for which comparisons were available. The Yugoslav product undersold the domestic product by an average margin of 16 percent. Margins of underselling ranged from 10 percent, o.r * * * cents per pound, in * * * to 21 percent, or * * * cents per p~u~d, in * * * A--25 Table 16. ·-16 penny bright common nails: U.S. producers' and importers 1 weighted--average net selling prices for sales of domestic product and for ':li:lh:\i •Jf .i .. 1::11_1rt:> rn.im YU'J'l~l<'\Vic\, <rnd lllcff'jins by which impor·ts undersold/ oversold the domestic product, by quarters, January 1983-June 1985 M·· * J(· * * Transportation sosts Domestic producers of nails are located in many regi9ns of the United States with no concentration in. any particular location. Imports of the sub-- ject products from China enter the United States through numerous ports on the east coast, the Southeast, and the west coast. Imports of nails from Poland enter the United States primarily through ports in the Southeast and the gulf coast. Imports of nails from Yugoslavia enter the United States primarily through the New York customs district; Miami is utilized to a lesser extent. Trucking is the primar·y · mode of t:nmsportation for nails. Al though transportatio.n costs are a major concern when marketing or purchasing nails, there is n~portedly no significant t.nuisportation co~t advantage in favor of U.S. producers or the importers Qf the subject products. l/ However, because transportation costs are signi fl cant, most U.S. producers ship their nails within a 500-mile radius of the nail production plant. ~/ Exch~r.i-9.~ .. rates. }_/ i Quarterly data reported by ihe International Monetary Fund indicate that during January 1982-June 19.85 the nominal value of the Yugoslav dinar de- preciated relative to the U.S. dollar in each consecutive period by an overall 82.5 percent (table 17). In response to the markedly high level of inflation in Yugoslavia compared with that in the United States over the 14-quarter ;:, .. t·.i•Jd, lhi· '.... ~.;!•"ri<.:i.tivrial pur·d1asir1tj power of the Yugoslav currency depre- ciated by 42.3 percent relative to the U.S. dollar-significantly less than I.tu.' <:~ppanmt:: d~~preciation -of 82. 5 porct!nt represented by the nominal de- valuation. ii __________,..____.,..__-.......... ---- ..........-·-·-----··-·----·--.:..-...-....,.. ____... ,,_.. ______ ........ _,_ ......... __j/ Transcript of the conference, .p. 77. ?/Ibid.,p.74.· . , ~./ Market exchange rates for the 'currenc.ies of the nonmarket economies of China and Poland are not available. '!/ The percentage change in the international purchasing power of the Yugoslav currency from the reference period January~arch 1982 provides an in- dication of the maximum amount that foreign producers could reduce dollar prices of Yugoslav products· in . the U.S. market without reducing profits assuming they have no dollar-denominated costs or contracts. Foreign pro- ducers, however, may choose to· incn~ase pr·of.tts by not reducing dollar ·prices or by reducing dollar pric~s by less than the depreciation would allow. Within specific iru..fulltries such as the steel wire nail industry, the propor- tion of foreign producers' costs attributable to imports of raw materials and energy from the United States or from countries whose currencies are linked to the dollar wou_ld vary by speci fie products .and producers. A-26. Table 17 .-Indexes of nom~naJ-.exchar;ige-r.ate equivalent.s .of tne. Yugoslav dinar in U.S. doll~l'.'S, r;ea-1·-exchange-rate equivalents, and ·producer price indicatqrs in the United.States and Yugoslavia, V indexed by quarters, J<:i.nuary 1982-Jμne · 198~-- · ' . ----·--······--·---···---·-·····----·----·-·--(January-March 1982=100. 0) ·····------··--···--·································--- U.S. Yugoslav Nominal Real Period · ' Producer Producer exchange exchange ............. : J:>.r..i..£.~:J.ng.~!__.:.._.eL!.£~ .. -lr.ig~~......:....... _ra 1:.~ ... .i.n~.~.~.......:_. ra 1:~ .......i...rn!~.~~L 1982: January-March-----: Apri l·-June ..., ...................;.....:······---: July-September .. -: Oc tober-Decemb~r··:······-.-: . 1983: •... ,. . January-March··-.,.·············~-..-: Apri 1-;-June~---.--,...·-·: July-September···:··.······,·-·-: October-December-·-··-: 1984: .. January-Mar:c h-:-:--······-··: : April-June······················· ···"···-· : Ju ly-Septem~er---,.,.,_-;.. ···: October-December·····-··...-: 1985: J anuary--March- · Apri 1-June !/-·-------··: 100.0 100.1 100.5 100.6 100. 7 101.0 . ·102.0.: 102.5 . ·103.6 ·104. 3 '104:; 1· .. 103.8 103.6 : 103.6 : 100.0 . ·.. 106 ,,l : 114. 1 " ·: .119.0 " ... .;;. 1:24:5 : ·133. z ·:. ... 149. 7.: 174.2 198 .•8' : ·203. 7 , . 241.1 ·.: 275.5 ., . ; 309.2 : 341.1 : 100.0 ,100.0 .... 96.. 0 101. 8 '·' ·-88-. 9 .100.9 -. 73 .0 86.3 '· : •63.2. :·· 78.2 .·53 .6• 71.0 44.6 65.5 37.2 63.2 35.4 ·: ·': '67 .9 33.1 : 64.6 ·21. 8· .; 64.3 23~1 61.2 ' ... ' 19.0 : 56.8 17.5 : 57.7 11 Producer price· i~dicato~·;::_::_r~·t·~·~Cied to·· ..·;;asu.~e fiii1&r···p.ro~iu·C'·t···--F>·~·i·ces=·:are based on averag~ quar:tedy indexes presented in line (i3 of the. Internat.ional Financial Stati sties. . '?:./ The real ViillU~ _of a currency is ~he. nominal value adjusted for the dif- ferenc~ between inflation rat~s as measur~d by the Producer ~rice Index in the United ~tates and the foreign ·country. Producer prices in t;he ·United States increased by 3.6 percen~ d~ring January 1982-June 1985 compared with a 241.1- percent increase in .Yugo~lavia during the same period .. 'll Pre 1 iminary. Source: International Monetary Fund, International Financial Sta ti sties, June 1985. Lost sales . . : . . The Commission rece-ive.d 24 speci fie .lost sales allegations from 3 U.S. producers, involving 11. firms to which they had allegedly lost sales to im- ports of the subject products. from either China, Poland, ·Or all three subject CC:.luntries together.. No specific separate lost ·sales allegations were .received iflvolving imports. of nails from Yugoslavia. The total allegations amounted to ·>E- *· * tons and . covered the period January 1985-May 1985. Several other U.S. producers reported losing sales to imports but were unable to provide specifics with .regal'.'d to country of odgin, quantities, or ·types of nails in- volved. The allegations are discussed below in the order of. lost sales in- volving all three countries combined, ·-lost. sales. involving nails. )mported from· China, and lost sales involving nails imported from Poland. · A·i@.-A . 6 :,G_?~'1l.~~,.is~ilg$:1wtQn~··.μ,-§_1d prtQdtiGCE!fr..l _s.urbmiY.t~e,d' t~ol ~_l'0~t>_:·1s:a'l,..~s)~~~l!e'g'aL.. ,, I tions invo 1 v lrl•J b"'o purchasers that had allegedly. apu.~1a.S\taioa'!ltottal !().fr *-1 *1!:*JoJ tons of nails from all three countries combined. One of the alleged lost sal~~J;_ 6 ~nv.pJ.cY1ing 1-· ~- ~l ts!:H.i:slurai1.19 .~ * * ~s bb110:!to'· *t,ojitid*,*?rb* ·* *': ¥wli 1 ich dis~r.~.~-\.l}e~ ilt I ,. ..:X:!~ilif>,p1f~t~<jl ~-~ *0!f"9rt~ro> ~ ..OhtheseX nvai~1 s' 'anet1 -* *·* ·tons of Y_,p,.~~~ h'H' n~J\~ ..)P~ M·b~-::>~~ 1 ~,--j~· ;~·,!:1.._. sj:~,~~dc:lt.h~t l:t:rheorr.:eas.·,:m'..for import.irig nails from, -C,l'J-frr~ 1 ,.'1Dltaa'{-~i !~~~ 1 ~itY:· tt ~ I~)!t. 11 p~&~.;iJ:h9:t.:J:i~ ..mfilor·i ty · of .. hails· imported fro.1~1._ ~~k!~ .~f~, -0·~,l,~5 ~r;g~<J.l't?.Jti-(~~~(~ -.~ar:if!):..1 J\Pt:td~r.>p~d .r_oof in9 , nails, .which are ava_qr~J~ ~.~ .. y~';'Y hmt~-~~·-·· q~i!'~if iJ.i'l~-t flJAl!Jo99J!le~~~c,. s9u~ces. ··-* ·* ~, ~.tated ~hat the nails i:inported from Yu9oslav1a arc~ very poor qyahty .. common na~ls, which, accordingly I are imported at prices lower than the price of ·U. s .-produced comg1g!\;anaJ,~~-· ·' I!~~ ;;a~1~e'!!&~~'t c!,UWffi~. pu~chgt!I~!;'~~ qms,id.er.i.·str;ictly the price and not the aualitujwhenl\purchasing.. nails. ·J·• ,; ..1·, -, .. ,,.._.-; ;, ;< '-'' "" : . ·: · .. · · 9fi J IQC'(J U~J J ~ t: " ~ • -· .,~' I v - l,.IJ. ~I,..., ..,, - _, - • • • ~~rl-;· :t;J :1·"!.J.:}J;Ofl 3f1.:l "IV :;\'.!.1,_G:·:,...:t ~•t:.J :':;,._.; .....-.1· •. ~- ·:.).~ '· • •#0 :·r ·' . M· * *, a distribut.<?r-Ji!;;.~i ,~~'d:t.'a~.-;~it~~:p~.rt a.,lo~t!;..sales·!allegat'ion :i1wolv- ing a total of * * * tons of nails from China, Poland, and Yugoslavia during * *b~u· .i:ri~'i· ~ * ~· 1fEP:JlfJrqne~~ ,tijlv ~ng -P!-11.l~~~~d :~-L~ ~ ::.t~O~J~~_._<?.e i.inP-o.r.~~~t·· n~Jh ·,in * * t~o: :,.,! 6 ~ ~f~ 1~m~~e<t.itl)a~, it.. it ~., 1 P..~.'W...'l!lt ,9J\·:~he,i.,*:* ~, tpns,.were·; f.ronr P.oland, wi ~!'iJ:J\h,Jt.;~i;.-e~:\:.'}<t~r .o~~!'?~ ..:fP.f0~!-4~ed. -::~n r<iil1~n~. ~l'.l<L:.~ugqs lav.~a·,. :. He s~ated ~--~hat p~ic~,~@llri::il:\\s!f.1 ~1:,ma[,~..:J'l'm~A.n1-:f.RJS p~r;.chas~J:n9:.:;t"1~· .i..n:ip~mte_d,;n~lls_.. which he- es,.., t1m~r~~r.i ti~• ~~ 0 }0r1 P,e'llct'?.~1J~erzr.~l'.1e~b~fu competl;l\l9 ~,d.omest.~c. pr.:od~ct: ··::*'*'-*~ s.ta~~~ ~~~~1 r:f}J:h8.l;lgb19M:1 J>r~J~r!J@9 ~9w-'~~:~ 1Va~.:.::;pr9duced:d1a1·1s1: be: was forced ti;> ~~r~~\s~Woort_~~is'?,'1h.>1:is }Sl·, 05~~Sw t<?ifCQmpe~~n~~-t~r~:r~._r~ .., ·1 : .. : - • - • · • ,. • \,. r:.. ;_·.:,· ;" Lost sales involving nails from China.-Two U.S. producers submitted 16 lo\St sales .alle,aat.ions ,to,ta· 1 inc. r' ·M-.)~.JC· tons-;of-:- na-; ls ,frbm.-.Ghina dnvo:l.ving::-fourrno""J i ? : ! .t0n :"'f.1 c:' h.JJ .,.. ~ .f- ti'?· .1:. l • , .... Jo ~ .... • '· • ... "' "'"~ -_ • •• ... • ~ • ~ fir'!!~1 i-, 1 Lh~rig~~T.~~s~?.".l ~t~ffi .~o.~e,1:J.9~>i~d..:i-~:U .16• ~allegations. · :rwo ipurchasers ci tid19f~n }!rl~ *r19.§lJJegatiu.ns . totalil{\9_ ~·r.~s~ toriis .-eonflr;med r ha\i'ing I p_ur-·cHased appf'.:.9~.Jrv,a-tr.~~:Y ~J~if~ti~":c;~Ol'J§ gfc;:,Cl:l.in~a,e .nails 1~,i11 :. rl4eu:: of.! ;the! 'Am"erican 'product. One !JRf Lh~a1-:1W.9~1.Rpr:~t•flS~IJh;,f~Pl>~~~dH;J;;hatii her;;.11J«L.suppHed.:.. the•·C!:hi'ne'se~pro~uced." . nails. :by~ra U:··~. e·P.r~uceri3wbQ,,r13old1~them~· at lthe. :'same*pr1i"c'9" asL'.the• u.:s!.!..f'produd~d · '~ · prod~~-t ,~ 3 ;~.J~e~rr~~~qt!~;P.;l xif'~P.!P-l':ted~itbat-;rl theti.:U1. S1 ,\::;i·1p·r.illduc.er,~;:·r1ilpo·r-t~d 1 r;; th~· :-natls · - - from China * * * to supplement its own nai 1 production. The other purchaser ci l:c:~d the Chinese nails' . lower price as his primary reason for buying the Chinese nails. In * * * allegations totaling * * * tons'· the p'u[-c_h"eis~er'.';in-· volved denied the allegations. The remaining firm, which was cited· in * M· * allea~tion!!1 to1 ~a}.i!'}g 01~Jf "ti.Ji~.9!il.J·, ~u:l:'d no·t 1 ~01iunent;::,.,,-,oe,ta'ils :.of: 'i;he · :allega- •. ~1..,.J./O.JVd• c.;, v ..,.d.._b 1. ..,, - . • . -· • !., . f' • :... c •r }(· ~· ~· '\ ..., ·• t1onl::'~u.an.Et ..i ..s_F,MlJSS._ 01 .~:+9Wmo"li no1J,:,:!J•-='.!llo::i o, ·~<"i.-:.u ·. rr;;1. ·'-' ···' -_- • _- .. 'tc 1; ~·· ·~- nl .anol.Jme9IIfii '<· >!· t'- !Iia ;o0J:.;if:?~..:-.':\·:,J: ~'"':·.cj:;; -.~:.•_·c.-,~'-'.U~'. ~:: .- -~f0 ~oif·t !:i~ 9 J:lilJ:f:,ib~~.~!' l:.lJ?i~ttt.~d.:1iO;,r~rttJcf ,rirwas, li c:t te~ t.:itnr IifJltJ*~rlost:-:E:sales a lleJlrit i~9s sri~ta~;~D9J::1t!Jt ...* 9 ~Q"l~ Q~r&h~.ne~ti iiai l.sc.1 idur=-:itng ~;~; *P. !f~_,,,n *><*:r* r1 con,..;. firmpj c:~fi~in,g *p1,1r~ 1~as,1!dx ~.JaPf1>J<il'n"i!l~-ol~h* it!Jt~_q11s1 ofkChir.i'ese~produced nails:._ · * * 1~1- ur.:0epor~ted. 1 .,tt1e&t ,.he;,.....,;is,..,,.,su"nn:l.tied ,t .... ~;;rChine$ei:mai1h1' by,...,!E'.tiff!f,~mwhict\ i:mp·or-ted 1 'w W •~CIQI .._, t..1"1 t;'l•.r.. r.&..W:...1.~ t ~ft',· ·-!•........., · ~ "'- .~ the na~!_~.J : 0 *u~<:'c:u .....,,~ 0 s~;~e~nrlt'IJ'~\! 0 ~1:i!@i ,C.ljljn,§edl')~;irls.1 wer,esi~.old sto him.1atw.the ·." same price as * * * U.S.-,.produced nails. He added that M· * * supplied him Chin~Je~;lilSl...P~~ ..when,.;J;he 1tY.P,.~ "ftf 109':.i-.l=al_he~ .t:raequ.ir:ed~;i *..'tlh.!Jf,::o_wasntt.::'a:vai<:hibl'e ·'f.rbm.. *· * ~9 :illo8i.n producti~n ~faci_ii1it.t,e.s ·E ~ i:Mn*9i!°9rals1:> r.u:epor.ted i:pur.chas'i~9~- 1 ~ppr-o~.i:..· - , : : mateJMr1::;* -~9 Jtrt~l)!.i:·9.f .,PpjJ.~n;rrJai:il:s?!*riif -it,UwhiGhewe.rre 'pl!"-i<:ed"l:~bolit"'! 10'::perfc~~t2': '·.::· lowe.rw1i_halJi:<FPJ1!Ri'ttiQ.g:jU ·PI·io.P.f9dt.LO~'td o~B'. "* *1 *t * ir.idieated:r:.that'<;he8pur~na,sec:r::-.: ~· the ~f~J i 1Vri Jlaj.J_,s~ J{l; 11 ~'rl o,f,,,1.,U;'\:iS ·1DPI~11~d.Hrtili:h ~17ima~-H·y.1 be.c&u seo of::~~~:. tlowe-r.') l" .. Pri. ce . rl . . ~ ' -- _.,.. ... . '• - .. - ' . - . --- ~-. r. ,.- •.. - . :~iii;:,r. .c.U n10dJ \!S.dioup ''W j?.1.:1 -.o 9"i£~:i .~~:~ ,.;.;_._,""::. --::"· -~·-, · · · · ·· . ~fv:i ~iiffvd~~tri:AJli~·;;··~~9~f:t"~<t!tt~~-Jt-:f~~.~-;c;~f.e-d.1 iin--;~~-;~-Jf -1C:,~i~~~1~s -~1 i-e·9~.:._ ~ tions totaling * * * tons of Chinese nails durin9.~c,,?iL·::•:":,!1::*0·~.:.-stated.i.that:,he' had purchased * * * tons of Chinese nails since * * *· * * * stated that the nai h from· China were "competitively" priced. He noted that the· Chinese nails h~~ --lt,~19qlJ~s Q.q.> l~~r·~ z11y.:fll lt-_l,yt ~;; J«J .JM!ya'r.1d that ,,tM b~.Y ~~r.. lfmfh--wt:£filliiJ:.he'.:!~Riu!;\~-~/J2R.\;t a low~r.Jl· Pri'f8 fg;foj.mP,orot,e_Q.;rr!iilliil1s. 'li b~>[?!'.d l.G :,,;.d J p;rf) ::: ..10& s:>d:.:n uq o~rJ e11 fv Iovn l rno.d 1aoI bse911.s 9flj 'to gnO . b9nldrnoo ~oh:tnuoo 99"lrl1 l 1£ mo"l1 a-I i.t0n :Y0 enoj rbffitl ~~ la·*dis~rffbc!ttop<· l.loijateij d;ni * * *, t:UJciS1uteit@8<t ij}f JM. ·JM. ~nl1'l/s<t"'''~jl~1>It:>~ a 1 ~q~ iclbnlt ·wt:Q:ind itigi:Sfi *9~9rtbffi! b.f ;(Jhl::he~ e~ ti\ i ~~jCl?Wln \ ~ ¥-i!Jf. ·){ \ -llf ff9:t1e~1:1.:tie .[ b thaj;f .itih~ ~l'.Jlll~~ ne:ulerncpwo:.cha:s~ ::mdJJ.sb!tPla:t::: ~~ ·~rod~·~cf* iA~ctl:frlif~ 1 'l·fdJ.~~~ 1 ~' ·M· ib~J~>i:phinotill!Cth~ h@J .ihW!(rqi>1.1r.c-tlas:wrl:a~'K'imlth~ * ·*!.1* 1t8RJ X6¥ 6 P&fif'slf'1:fcl s'';0 ·\ which:> hcbiewtirpatedn tQ.;lllJi>QO<tO. PCHtt1'1!ht:h.1'bw~'~inf:i~~rif~defillrlJt:~fupe8lf9 a8iti~~~tf't 'I I nabwrlj ltimtlia'dd~ *tl¥at .P&l>J.'l~enaits9'&'Ceol9A~'t·fo?-l.:a:t~ s~M.\'"~~r'ti~1 t:aij,~ '1/'. iti~·wio firrn~:slrtuDtPi>lf.j)urohasre,s:.)ofjtfi&t;{llgi, ..10oq 'l"rnv !)'H~ 6J.116IeoE.JuY mo·'il l:.i·:.•hoqnu <: .r.t<>n. 0rlj be.:>ubo"lq-. 2. U 'to 9::>.£-:tq 9rlj nsrl:t "'19woI ae::>bq :ts. b.e.j·"loqm.i: 9"'1.S , 1tienib"lo::>::>.s bndt ~.::dhq a9"1 *v.~:atii.·-m-i1'>a~bjt't'tf0.'f A'i~<J..§rl:*·1~ *.~inwas ~ e~t·e& 9 PR"'* !'9':1 * l Jsjtsnsa'AC>l~IJll)'.) alle9at'ions totalir19 * * * tons of Chinese rl!Jil.11fl -ierw:a,p.rlo"'llf~·fl#rl'g't~t~~to•t~at ~e::ti:m required a written request for information and, because of the nature 0 ~ ~he fir:mJ§c>~hnat.ii~ijL.kievefJi4edctysiitQ> dbfnpti~~.i::th@SlfJnf.~·r&~ioW.::tudhje.i:b '° ,-H· · · · . en.i:"lub sivaieoeuY bns ,bnsfoq ,.sn!rl~ mo,, eiiton \o en9:t * * * 'to 1.s:toj s enr ni LQ.S:1ts'15ale!t"lqi;J!ruiol'Vdng:n~i ll ·l'fft>mb~~~q._...UJ6v~ul. S~9~Yo1Rfc:ersw f!i~Wi ttid~· ~· X· ·M·, 2fntalld<e911tti'bransiar1\R11ctPiri9 ~dllr·9ri3i r\?.I :ilrtft:&"T3R11f l ·~· ~sfbtn~ 9 dfmn~U ~ales Jos·t*. * to ~etiiti;oia fjHom ;lliii::il:S!f e~~~u~ :fn1.i:p(11iiffiij. b9fH~O'l!bmAl'i!~~~on,~ffliH~ 9 1n\1~Q1s:tti~~ .ci..i 9ated9 *9..t ~b.b'fW t.hdiail'tl~ ~aDh\jtii(f::>xa.~ asHs ~i'Ag6'¥w11' Mbh~'i~r 9 ~r:q One•pi1rtthas.eouthati. waistec9irtdd d,(jlii::*3~oo a!}t1e9i'@'blns...,~1:i"Rg::>Si19fil IP1t 0 }lg .W n~~j.srru:t confj~l)·ft)e~ having' patdtas~::>tt~o,<J?ol~sflli ~uet BOl!,~~,CLn~~19ettsrl:t~i~Bf!l ~~1 15 :t.e quantity involved. The re~ih:thgljilrr~t9tttn*:'.)*~:two~!ao no\: eJJnfii\1Jtc:.i.:J·'l<fjW~ai'rS""'8~ q:J the alle9ations are discussed below. iH be:t;:t..i:mdua e"'t9::>ubo"'lq . 2. U owT·--. ionlrl::> mcnl al.i:sn eni:viovn.i: ... a else :te~.:J ,u·~'t*e't'I l ~ncii 1ardi rf:i>n mtt'I ~ * l.~Jrl el.~U8R~ ·~olal i ~JJ .i: ~::fe'xff l'o'tiV 68f U 6 · <- 9 foe j l;! ,,,J. ':I "':I . . Qa 1 ~ r rom . ~ Po l<ari~a~-iwlil ~"f( x. and<i:::Mo~IJ~tilkl It!tmt!:>~@™<Jd9l{)Qhf\«1§itit~ 8RJ a§tfi'fl!lfil~ne 1 Hf. a~,~ · pro~iilD~tle1YJq * ~ iltinrtorflmmof'tnimpol!'itQ<I jlf·afl 'N i.::Jfiii i£•o•. en1uisowetiflted"' lh!t 't'hePa:t i::i 1 ~ 11 ·r·l~j:Jl~cfq{~::;hi~ l!llrl::linld.ho9·.Ship1ilent-1 wt !Wl;ftl'l~b't@ t60~s~ri\<af'e ~~aw..::iqqlO ti t.v,9~u~qs~~~d:.tJh~t1J cbaveq~eac,iH<•iwasd hi&l'f-Prl:i~11-<y<:i~~as<:lfi1<:f.flbr1Lt.'u~si'Ag tf\e !mO imp~;~o;qil.Jas.,u ~il'1$ bhabq*edha~. grl:Jf ~ Mm~d:doth~Wtfi@::>~'N!s. ~N. fhe'ldimJ .i:sri por~'!<tsWl4M>t a!Ni~Mting,;.~ti~ .tllai.9tt:t hai:lef.Jbeei'flf·~PJ1t'0>xi~~ipvi1..'tihe9'!'Itme ..~ :1 :iubo"1q "'19esrl::rtuq "'19r.f:to 9rlT . noi::t::>ubo,q I .i:sn nwo a:t l :tn9m9!qqua o~! * * * .Gnul::> .mo,~ 9rfj en.i: 'lUcl "!o't noa.ro9·1 •f'lt0mhq eirl &IO 9:ibq "19woI 'e I ban 9e!:ln.i:rlD grf:t boJ i. :i .Lo~-~cf.1e~::>i1'q ert:t , eno:t * * * en.i:Isioj anoH.6e9IIs * * * nI . al.i:s:;n 9e9nlrlD * ·it * nl b9:tb e.6w rb.irfw ,m.,J't en.i:n.i:t0m0·1 0dT . anoU.6ti0IIto 9rfj b9-i.n9b bgvfo11 . -s~·u.1. §r.b ~dtit~Orepdlntl&rcho~ j(orlt b~ ~ul *atle§!aH~ilfs:t .~it~! ~s $*· M· ·>f. on * * M· tons of nails owing to competition fromweffi.~els%ecmtiei.i'sbdta1'5irftjW.C:I * * * The Commission staff investigated all * * * allegations. In * * * of the e~l ~ga:.t:ciofis *ttitl 1 imi3 •:t .lb M· ,emtt.e, ipd\--~a@i~rsb~ lfititd ItW q.,ePe J'ot* o*r- ' fere:dio6h»tld(se+. nai~s* iil4t [bhiriubi~I.bfh th'e9r'lii~gi<I ~Pli'~e +e't:tJ+ctrfSfi~.sjt.:()\,e.es<pi~I~.s pun:.ha~ lmm.fl:io~esmrl:lo§o ~u~ ~tle~"etSl'fL'Hf'I• teb~JC\5\1,Jtiq* iflit'dWs \~rn.c't na i ~~ t1o l diomP'!!tlt tlto¢ f rbril6tG:h:i~!~~tf ::flcfi'1:6 .b9 ~ 4-ierritfiii fifg :.\:i'Uf'c l'Pc&t!l-Oc.w&\i {~ * * not g.1t)Jnme.etrnt.iri 1Itm lst.dzjeotl~w cMUaPf:tls9~~ allte~nqe~~~edp!'cuss~d*b~l~J~ton 9 rlj mlrl bfliiqque * * * :tsrf:t b9bb.G 9H .eI.i:k>n b9::>ubo"lq-.Z.U * * * es 9::>nq em£e mJt°.i,,,. ~I~.i:.s~iotedniawa,-MJ.dStf'· r.~sal~~ ~ !p£3t Wl:t>rft!W'I~ *IWns9WtlrlD nail.s.t ~ee~felSW~i tiiionodjoom c.Otf:Enefe*n'li ls. ~;:tirlcj ::>•'t* rE?.i:t::,.J~'1f.l rei>oY.te~ * ·it thatjr~'l9qil'l!Jl1 hruroctwrbhab1!4 ~-f99igeselriailSf fn*199'"5i~~~ lfri~iajlJt..~ *th'&fi9:t.Gm · com~CJ:nlJqSgT'fp~eld9J.eaillis.i :*Hf Hf* . coMd ~b'n'Ca·lf.J.· Ut~i~~1'.'.fte.6np0 sl;9WOI rev~!ll~citd.on?uADlidd ~Rttmt ct.t.i:.1w1uP~· 2t:iblae't:o W Irepb~'l:Hiitl t~~ 9 rf:t Chinese nails were packaged better and were of higher quality than U.S. nails: 9 ::>i"lq JJ-s~I Il.o1ib!l&-evaeoe ~!fl~crtildP$t .i:ioe~ i.rlg *nli pg1.cf~~' ~j8P5vtigofi[~Tu . wereg.Sublri:ttad:t~e·tllie*~mmi'hlo~. pnhub el .i.Gn 9e9n.i:rfD 'to eno:t ·K ·it * pn.d.s:to:t eno.c:t 9rl:t :tsrlj be1s:;:ta * i(. * ·-* * * 9::>n.i:a eI.i:.ron 9a9n.i:rf:J lo ano:t *· * * bgasrf::>"luq b.6rl eI).sn geenirl:J'grltf :tsrl:t b9:ton 9H .b9::ihq "'lI9v.i::ti:l9qmo:>" !.l',9W ~nirl::l·1110,1 d.i:s:;n A-29 * * * was cited in a lost revenue allegation of $* * * on * * * tons of nails owing to competition from Chinese nails. ,. If,. reported that the firm has never been offered Chinese nails. * * * was cited in a lost revenue allegation of $* * * on * * * tons of nails due to competition from Chinese nails during * * *·· * * * stated that the firm has been offered Chinese nails in * * * but that any price reductions in 1984 were caused by competition from Korean nails. * * * reported that the firm currently purchases Chinese nails, ·which are considerably lower in price than competing U.S. nails. * * * was tons of nails. cited in a lost revenue allegation totaUng $* * * on· * * * * * * stated that * * *· A--31 APPENDIX A THE FEDERAL REGISTER NOTICES A-32 Federal Register /- Vol. 50, No. 114 / Thursday, June 13, 1985 I Notices 24845 INTERNATIONAL TRADE COMlllSSION c1nv1111pt1on Noa. n1-TA-21i ThrouQh 281 (PNlhnil• rll . Certain Steel Wire ran. From the People'• Republic of Chim, Poland. and Yugoslntal AGENCY: International Trade Commission. ACTICMI: Institution of preliminary· <8J1tidumpin8 investiptione and - Scheduling or a conference to be held In connection with the investigationa. IUllllMY: The Commi88ioil hereby giva notice of the institution of preliminary antidumping inYeStigation Noa. 731-TA- 266 through ·288 (Preliminaey) under section 73a(a) of the Tariff Act of 1930 (19 U.S.C. 1673b(a)) to determine whether there is a reaaonable indication that an industry in the United States is materially injured. or is threatened with material injury, or the establishment of an industry in the United States is materially retarded, by reason of imports from the People's Republic of China, Poland. "°d Yugoslavia of one- piece steel wire nails ·made of round · steel wire, provided for in items 646.25 and 646.26 of the Tariff Schedules of the United States (TSUS), and similar steel nails of one-piece construction whether over or under 0.065 inch in diameter, provided for in item 646.30, two-piece steel wire nails, provided for in. item 646.32 of the TSUS. and steel wire nails· with lead heads. provided for in item 646.36 or the TSUS, wh~ch are alleged lo be sold in the United States at le88 than · fair value. As provided in section 733(a), the Commission must complete preliminary antidumping investi8ations in 45 days, or in these cases by July 22. 1985. For further information concernin8 the conduct or these investigations and rules of general application. consult the Commission's Rules of Practice and Procedure, Part 207, Subparts A and B (19 CFR Part 207), and Pert 201, Subparts A through E (19 CFR Part 201, as emended by 49 FR 32569, Aus. 15, 1884)•• EFFEC'T1YI DATI: June 5, 1985. FOR FURTHER INl'ORllATION CONTACT: Abi8ail Eltzroth (202-523-0289); Ofllce of lnveatiptiona, U.S. International Trade Commission. 701 E Street NW., · Washinston. DC 20l38. IUPPUllBITAllV·INFORllATIOM: Bac:kpound These investtsationa are beins instituted in response to a petition filed on June 5, 1Sll5 by Atlantic Steel Co... Atlas Steel a Wire Corp., Continental - Steel~.. Davia-Walker Corp.. · Dickson Weatherproof Nail Co., Florida Wire a Nail Co.. Keystone Steel 6 Wire Co.. Northwestem Steel 6 Wire Co.. Vif8inia Wire a Fabric Co.. and Wire Products Co. PartldpatiaD bathe bw•tipta. Persona wiahiris to participate in these' invesfi8ationa &II parties must fle·an entry of appearance with ·the Secretary . to the Commiuion. as provided in I 201.11 of the Commiaaion's rules (19 CFR 20U1). not leter than seven (1) · days after publication of tbia notice in the Federal Rqists. Any entry of . appearance med after this date ~ be referred to the ChairWoman. who will determine whether to accept the late entry for good cause shown by the person desiring to me the entry. Service Ust Punuant to I 201.ll(d) of the Commission's rules (19 CFR 201.tt(d)), the Secretary will prepare a service list containins the.names and addresses of all persona. or their representatives, who are parties to these invesfi8ationa · upon the expiration of the period for films entries of appearance. In accordance with I. 2.Dl.16(c) of the rules (19 CFR 201.16(c), as amended by 49 FR 32569, Aug. 15. 1984), each document · · filed by a party to an investtsation must be served on all other parties to the invesHsetion (~identified by the service list). and a certificate of service !!lust .accompany ~ documenL The Secretary will not accept a document for filing without a certificate of service. Conference The Director of Operations of the Commission has scheduled a conference in connection with these investigations for 9:30 a.m. on June 26, 1985 at the U.S.. lntemational Trade Commission Building, 701 E Street NW., Washington, DC. Parties wishing to participate in the conference should contact Abigail Eltzroth (202-523-0289) not later than June 24, 1985 to arrange for their appearance. Parties in.support of the -imposition of antidumping duties in these invesUsations and parties in opposition to the. imposition of such .duties will each be collectively allocated one hour within which to make an oral presentation at the conference. Written Submi11km1 Any person may submit to the Commission on or before Jiine 28. 1986 a written statement of information· pertinent to the subject of the investigations, ae provided in f 20'1.15 of . the Commi111ion'1 rules (19 CFR 20'1.15), A eiped ori8fnal and fourteen (14) copies of each submission must be filed with the Secretary to the Commission in accordance with I 201.8 of the rules (19 CPR 202,.8. as amended by 49 FR 325Q9, Aus. 15, 1884). All written submissions except for confidential business data- will be available for public inspection during regular buaine88 hours (8:45 a.m. to &:15 p.m.) in the om~. of the , Secretary to the Commiaaion. All business information for which confidential treabnent is desiied must be submitted separately. The envelol>" and all pqee of such eubmiaaion m08t. be clearly labeled "Confidential · Business Information." Confidential submissions ·and requests for confidential treatment must confonn with the requirements of I· 201.8 of the Commission's rules (19 CPR 201.&. as amended by 49 FR 32569. Aus. 1s. t984J. Authority These investigations are being conducted under authority. of the Tariff Act of 1930, tttie vn. This notice is published pursuant to I 207.12 of the Commission's rules (19 CFR 207.12). luued: June 7. 1985. By order or the Commialrio~ Kenneth R. MaoD. Secretary: (PR Doc. 85-13758 Filed ~~ 8."45 am! ~c:cm,..•• A-33 Federal Resister I Vol. SO, No. 128 I Wednesday, July S. 1985 I Notices (A~J Certain Steel Wire Halla From Poland AGINCY: Intemationai Trade Administration/Import Administration. Department of Commerce. ACTION: Notice. SUllllARY: On the basis of a petition filed in proper- form with the United States Department of Commerce, we are Initiating an antidumpins duty investigation to determine whether certain steel wire nails from Poland are betns. or are likely to be; sold in the United States at less than fair value. We are.notifying the United States InternationaJ Trade Commission (ITC) of this action 10 that it may determine whether imports of these products are causins materiaJ injury, or threaten material injury, to a United States industry. If this investigation proceeds normally, the ITC will make its preliminary determination on or before July 2Z. 1985. and we will ma~e our preliminary determination on or before November 12. 1985. ll'nC11VE DATm:}uly 3, 1985. ~R PURTHEll INPOIUIATION CONTACT: William I<ane, Office of Investigationa, International Trade Admlnistraton. U.S. Department of Commerce, 14th Street and Comtitution Avenue, NW .. Washinston. D.C. 20230: telephone: (202) 377-1786. 8'IPllUlllMTARY INPOllllATION: Tbe Petition On June a, 185, we nceived a petition in proper form med by 10 domestic ateel wire nail manufacturers on behalf of the U.S. domestic producera of nch merchandise. The petitioners are the Atlantic Steel Company, Atlas Steel a Wire Corporation. ContinentaJ Stciel Corporation. Davis Walker Corporation. Dickson Weatherproof Nall Company, Florida Wire a Nall Company, Keystone Steel a Wire Company, Northwestern Steel a Wire Company, Virginia Wire a Fabric Company, and Wire Producta Company. In compliance with the liJ.ins requirements of I 353.38 of the Commerce Regulations (19 CFR 353.38), the petition alleges that imports of the subject merchandise from Poland are betns. or are likely to be, aold in the United States at le11 than fair vaJue within the meaning of aection 731 of the Tariff .Act of 1930, ea.amended (the Act), and that these imports are caustns material injury, or threaten materiaJ injury, to a United Stats industry. . The petitionera base the United States price on 1984 and 1885 price quotations received by unrelated U.S. purchasers for steel wire naila produced in· Poland. Petitioners claim that Poland I.a a state-controlled economy country within the meaning of the Act It alleges that · the atate-controlled nature of the industry and the comequent ability to aet prices without resard to production costs does not permit a reliable caJculation of foreign market value - baaed either on sales or offers of salea of the product under investigation in Poland or to counties other than the . United States. Therefore, petitioners request that the Department of Commerce choose a surrogate country to establish foreign market vaJue. The petitioners choose Greece and ltaJy a• the non-atate-controlled economy aurrogate countries whose prices ahould be used as the basis for detenninins foreign market vaJue. To aupport their allegations of aales at less than fair vaJue, petitioners construct the value of ateel wire nails. In 10 doing, petitionera rely on v.s. producers' cost of production information including costs of ateel wire and other material and fabrication lnputa, adjusttns labor rates to refiect an average of those in the proposed surrogate countries. Based on the comparison of the adjusted U.S. price of ateel wire naJls imported from Poland with the adjuated cost of production of ateel wire nails produced In Poland. the petitlonera allege dumpfna marsma ransins from 78.2 percent to 83.8 percenL lnltiatlon of lnveetiptloa Under aection 732(c) of the Act. we must determine, within 20 days after a petition II rued. whether it aeta forth the ·allegationa necessaary for the initiation of an antidumpins duty investigation and whether it containa inforJDation reasonably available to the petitioners aupporting the allegations. We examined the P.etition on certain ateel wire naU1 from Poland and have found that It meeta the requirementa of aection 132(b) of the Act Therefore, in accordance with aection 732 of the Act. we are lnitiatlna an antidumping duty inveatigation to determine whether certain ateel wire naila from Poland are being. or are likely to be. aold in the United State• at leaa than fair value. Iii the course of our inveatigation. we will determine whether the economy of Poland I.a atate-controlled to an extent that ulea of 1Uch or aimilar mercbandiae in the home market or to third country markets do not permit determination of foreip market value. If it I.a determined to be a atate-controlled economy, we will then choose a non- atate-controlled economy surrogate country for purpoaes of determining foreign market value. If our inveatigation proceeds normally, we will make our preliminary' determination by November · 12.1885. Scope of Investigation The merchandise covered by the petition conalsta of one-piece ateel wire naUs from Poland as currently provided for in the Tariff Schedules of the UniUJd States (TSUSA) under Item numbera 848.ZS and M8.28. and aimllar steel wire nalla of one-piece construction. whether at, over or under .G65 inch in diameter as currently provided for In Item number 848.30tO: two-piece ateel wire nails provided for in Item number 8'8.32; and ateel wire nails with lead heada provided for in Item number948.36. Notification of rrc Section 732(d) of the Act requtrea ua to notify the ITC of this action and to provide It with the information we used to arrive at this determination. We will notify the ITC and make available to It all nonprivileged and nonconfidential information. We will aJso allow the ITC acce88 to all privileged and confidentiaJ information in our files, provided it confirms that it will not disclose auch information either publicly or under an A-34 27478 Federal Register I Vol. so. No. 128 / Wednesday. July 3, ~985 I Noticee adminiatraUve protective order without the consent of the Deputy Aaaiatant Secretary for Import Admini1tration. Preliminary Determination by ·rrc The ITC will determine by July 22. 1985~ whether there ll a reaaonable indication that Imports of certain steel wire nails from Poland are causing material injury, or threaten material injury, to a United States industry. U ita determination la negative the investigation will terminate: otherwise. It will proceed accordins to atatutory procedures. Dated: June 25. 1985. AlanF.Ho&m.r, Deputy A6sistant Secretary for Import Administration. (FR Doc. ~15883 Filed 7-z...G: 8:45 am) 9IU9IG CC1DC •1CM11M1 - - ----- --~-- A-35 al •n•• I Vol IO. No. 1Z8 I Wedneaday, July a.· 1985 I Notices 27419 (Tl?MOS) . Certmln SIMI WR NaDa From the '9opie'• Rep11blle of China (PRC) U111CY: mtematlonal Trade Adminittl"ation/lmport Administration. Department of Commerce. AC'nOIC Notice. llUlllilAlllY: On the ba11i1 of a petition filed in proper fonn with the United States Department of Commerce. we are initiatina an 1nttdwnptna duty in\·estigation to determine whether certain steel wire nails from the People's Republic of China (PRC) are being. or are likel\' to be. sold in the United States at leas than fair value. We are notifying the United States International Trade Commi111ion (ITC) of this action so that ii may determine whether imports of these products are causing material injury. or threaten material Injury. to a . Un.ited States industry. If this . investigation proceeds normally. the ITC wilhnake its preliminary determination on or before July 22, 1985. and will make our preliminary determination on or before November 12. 1985. IEl'FE.CTIVE DA'ft: July 3, 1985. FOR PURTMD INFORMATION CONTACT: William Kane. Office of Investigations... International Trade Administration. U.S. ·Department of Commerce, 14th Street and Constitution Avenue. NW .. Washington. D.C. 20230: telephone: (202) 377-1786. SU~ENTARYINFOMIATION: 'l1le Petition On June 5. 1985. we received a petition in proper form filed by 10 domestic steel wire nail manufacturers on behalf of the ·u.s. domestic producers of 1uch merchandise. The petitioners are the Atlantic Steel Company. Atlas Steel • Wire Corporation. Continental Steel Corporation. Davis Walker Corporation, Dickson Weatherproof Nail Company, F1orida Wire A Nail Company. Keystone Steel l Wire Company. Northwestern Steel 6 Wire Company. Virginia Wire 6 Fabric Company. and Wire Products Company. In compliance with the films requirements of I 353.38 of the. Commerce Regulationa (19 CFR 353.38). the petition alleged that imports or the 1ubject merchandiae &om the People's Republic of China are being. or are likely to be. aold in the United States at. leH than fair value within the meaning of section 731 of the Tariff Act of 1930, as amended (the Act), and that these imports are causi113 material injury. or threaten material injury,·to a United States industry. The petitioners base the United States price on 1984 and 1985 price quotations received by unrelated U.S. purchasers of Chinese steel wire nails. ' Petitionen claim that the PRC Is a state-controlled economy country within the meaning of the AcL They allege that the state-controlled nature of the industry and the consequent ability to set prices without regard to production coats prevent a reliable calculation of foreign market value baaed either on aalea or off'ers of sales of the product under lnveatiszation In the PRC or to A-.36· . r . 27480 :, , • , .-;_; J· • :·: J•. ';_L~t· . · ."•?,, ,' .··..:·~ ~!: .\_ _,"fej •. ,, ~· .;-.. ((',:,.~ ~r ..').If, .• t;1.:·~ Federal Register I Vol. ·so. .No. t28~-l~,W,~~neljd,y,.:.Jwy:;a~:<:~~.. 4'.N~uc~,.:,;_._,; {?IO'-'~~,,f'·'~i:J1~ ~* r.ountries other than the United States. Therefore, petitioners request that the Department of Commerce choose a surrogate country to establish foreign market value. l.he petitioners choose India and Singapore as the non-state- controlled economy surrogate countries whose prices should be used as-the basis for determining foreign market value. To suppcirt their allegations of sales at less than fair value, petitioners conslnlct the value of steel wire nails. In so doing, petitioners rely on U.S. producers' cost of production information including . costs of steel wire and other material and fabrication imputs, adjusting labor rates to reflect an average of those in the proposed surrogate countries. Based on the comparison of the adjusted U.S. price of steel wire nails imported from the PRC with the adjusted cost of production of Chinese steel wire nails. the petitioners allege average dumping margins ranging from 60.1 percent to 85.8 percent. Initiation of Investigation Under section 732(c) of the Act, we must determine. within 20 days after a petition ta filed, whether it sets forth the allegations necessary for the initiation of an antidumping duty investigation and whether it contains information reasonably available to the petitioneri supporting the allegations. We examined the petition on certain eteel wire naile from the PRC and have fund that it meets the requirements of section 732(b) of the Act. Therefore. Ir accordance with section 732 of the Act, we are initiating an antidumping duty investigation to determine whether certain steel wire nails from the PRC are beins. or are likely to be. sold in the · · United'Statet at lees than fair value. In the a>urse of our investigation. we will determine whether the economy of Ute People's Republic of China is atate-- conb'Olled to an extent that aales of aucb or aimilar merchandise in the home market or to third country markets do not permit determination of foreign market vaJue. If it is determined to be a state-controlled economy. we will then choose a non-atate-cont?olled economy aurrogate country for purpotes of determining foreign market vaJue. If our investigation proceeds normally, we will make our preliminary detennination by November 12. 1985. Scope of lnv•tis•~ The merchandise covered by the petition consist!' of: One-piece steel wiJ'e nails as currently provided for hi the Tariff Schedules of the United States (TSUSA) under Item numben 848.25 and A&A 7A ""~ almilar steel wire nails of .one-piece construction. whether at, over Qr under .065 inch in diameter as currently provided for in item number 646.3040; two-piece steel wire nails provided for in item number 646.32; and. steel wire nails with lead heads · provided for in item number 646.36. Notification of ITC Section 732(d) of the Act requires us to notify the ITC of this action and to provide it with the information we used to arrive at this determination. We will notify the ITC and make available to It · all nonprivileged and nonconfidential information. We will also allow the ITC access to all privileged end confidential information· in our files. provided it confirms that It will not disclose such information either publicly or under an administrative protective order withQut the consent or the Deputy ASBistant Secretary for Import Administration. Preliminary Detennination by ITC The ITC will determine by July 22. 1985. whether there is a reasonable . indication that imports of certain steel .wire nails from the PRC are causing material injury. or threaten material injury, to a United States industry. If its determination is negative the investisation will terminate; otherwise, It will proceed accordins to statutory prQcedures. Alaa.F. Holmer, Deputy Auistant Secretary for Import Administrolion. June 25, 1885. (FR Doc. •151184 Filed 7-Z....U; 8:45 am) (A--17l-I01 J . Certain Steel Wire Halla From Yugo81avt. AGINCY: lntemationaJ·Trade Adminiitra ti on/Import Adnlinistra tion. Department of Commerce. ACTION: Notice. prelimin~ry determination on or before July 22. 1985. and we will ma~e our preliminary-determination on or before November 12. ·1985. · iFFiCTivl DATE: July 3. 1985. FOR FURTHER INFORMATION CONTACT: . William Kane, Office of Investigations, lntemefional Trade Administration. U.S. Department of Commerce, 14th Street and Constitution Avenue, NW .. Was~ing~on. D.C. 20230; telephone: (202) 377-1766. IUPPLEMENTARY INFORMATION: 11ie .P~tition. I . On -June 5, t985. we received a petition in proper form filed by 10 domestic steel wire nail manufacturers on behalf of the U.S. industry producing such merchandis.e. The petitioners are the Atlantic Steel Company, Atlas Steel I Wire C9rporation, Continental Steel · Corporation: Davis Walker Corporation. Dickson Weatherproof Nail Company, Florida:Wire I Nail Company. keystone Steel I Wire Company, Northwestern St~el ~ Wire Company. Virginia Wire I Fabf!q Co1I1pany. end Wire Products Company. In cpmpliance with the filing requlrements of t 353.38 of the · ·Conunerce R~gulations (19 CFR 353.36). the petition alleges that imports of the subject merchandise from Yugoslavia are being. or are.likely to be s9ld in the Unjted States at less than fair value . within t)ie meaning of section 731 or the Tariff Act. ·or 1930. as amend'ed (the act). and that these imports are causing material injury, or threaten material injury, to a United States industry. The petitioners base the United States price aon 1984 and 1985 price quotations received by unrelated U.S. purchasers for steel Wire nails produced in · · YugosJav;a: For foreign market value, petitioners conslnlct a value for Yugoslavian steel wire nails baaed on U.S. producers' · materi'al and fabrication coats adjusted for differerices in labor costs based on prevailing labor ~tea in Greece as an SUMllAllY: On the basis of a petition economy comparable to Yugoslavia, as filed in proper form with·the United ~ - :. ·Yugoslavian labor rateis were not . Sta tea Department of Commerce. ~e·_a,.:~.~·~publicly av~ilable. lnittattns an antidumping duty Ba11ed on a·compariaon of U.S. price investigation to deternilrie'Wliether; · ...... ~-and foreign market value using the .certain ateel Wire naUl'fnnii·:Yugoalavta;,,. ·\·fore8oiJis. methodology. the petitioners are being. or are ~~lY:~~.~..~!~.~ the, •.. !llese an averase dumping margin of United State~ at ~ea!' ~p f~ir_v,l~e ..¥{!{. :.· 88.1 ·percent. are notifying the Urute,!J..,_~!~~~s ,' 1 .:' •. '· .:·; • International Trade ColliiiiiHion (f'rt} · . . lnitladon of lnveatigation of this action·~ ~at n.~ay,d~te~il}e -~,. ·• · Under section 732(c) of the Act. we whether imports of, this.merchandise are· · must determine. within 20 days after a causing me,teriaI;injWj; or ~a ten' ' ~.' .- . petition :ie filed. whether it sets forth the .material .~jury: ~·a Uni~.Si11t~a: \'u ~· ·:. allesations neceSBary for the initiation . industry. If this,iliveatigation,proceeds '. . ,. "of an antidumping duty investisetion normallv. the ITC'will'inake"ita· '. ·. · · tr: ' and whether it contains information A-37 Federal RelPster / Vol. so. No. 128 / Wedneada)'. July 3. 1985 I Notice• reasonably available to the petitioners supporting the allesations. We examined the petition on certain steel wire nails from Yugoslavia and have found that It meets the requirements of section 732 (b) of the Act. Therefore. in accordance with section 732 of the Act, we are inltlatins an antidumping duty investigation to· · detennine whether certain steel wire nails from Yugoslavia asre being. or are likely to be. sold in the United States at less then fair value. U our investigation proceeds normally, we will make our preliminary determination by November 12.1985. Scope or Investigation The merchandise covered by the petition consists of one-piece steel wire nails as currently provided for in the Tariff Schedules of the United States (TSUS) under item numbers 646.25 and 646.26, and similar steel wire nails of one-piece construction. whether at. over or under .065 inch in diameter as currently provided for in item number 1646.3040; two-piece steel wire nails provided for in Item number 646.32; and steel wire nails with lead heads provided for in Item number 646.36. Notification of ITC Section 732(d) of the Act requires us to notify the rrc or this action and to provide it with the information we used to anived at this determination. We will notify the ITC and make available to it all nonprivileged and nonconfidential information. We will also allow the ITC access to all privilesed and confidential information in our files, provided It confirms that it will not disclose such information either publicly or under an administrative protective order without the consent of the Deputy Assistant Secretary for Import Administration. Preliminary Determination by ITC The rrc will determine by July 22. -1985. whether there is a reasonable· indication that imports of certain steel wire nails from Yugoslavia are causing material injury, or threaten material injury. to a United States industry. U its determination is nesative the investigation will terminate; otherwise. it wiU proceed according to statutory procedures. Alan F. Holmer. Deputy Assistant Secretary for Import Administration. June 25. 1985. (FR Doc. 85-lsaSs Filed 7-2-85; 8:45 am] lllllJNQ COOi! ll,~ 27t81 A-·39 ,, APPENDIX B LIST OF WITNESSES APPEARING AT THE CONFERENCE. A-40 Investigations Nos. 731-TA-266 through 268 (Preliminary) CERTAIN STEEL WIRE NAILS _FROM THE PEOPLE'S REPUBLIC OF CHINA, POLAND, AND YUGOSLAVIA Those listed below appeared as witnesses at the United States International Trade Commission's conference held in connection with the subject investigations on June 26, 1985, in the Hearing Room of the USITC Building, 701 E Street, NW., Washington, DC. In support of the imposition of antidumping duties Fried, Frank, Harris, Shriver & Jacobson--Counsel Washington, DC on behalf of- Atlantic Steel Co. Atlas Steel & Wire Corp. Davis-Walker Corp. Dickso~ Weatherproof Nail Co. Florida Wire & Nail Co. Keystone Steel ,. Wire Co. Northwestern Steel & Wire Co. Virginia Wire & Fabric Co. Wire Products Co. William 0. Riley, Pre.sident and Chief Executive Officer Atlantic Steel Co. Edward A. Knapp, Sales Manager Virginia Wire & Fabric Co. Charles F. Dickson, Presi~ent Dickson Weatherproof Nail Co. Samuel M. Rosenblatt, President SMR Inc. Oavid·E. Birenbaum ) Alan Kashdan )--OF COUNSEL Gabrielle. E. Gallegos) A-41 ih opposition to the imposition of antid~mping d~~ies flludge Rose Guthrie Alexander & Ferdon-··Counsel Washington, DC on behalf of- China National Metals.& Minerals Import & Export Corp. (Minmetals) Miller Supply Corp. carol Skeric International Business & Economic Research Corp. · N. David Palmeter ) Miriam Cutler )-OF COUNSEL A-43 ·.·APPENDIX C DESCRIPTION OF STEEL WIRE NAILS A-44 ' Nails are generally de~cribed on the basis of their intended use and the \ nature of their main parts-the head, shank, and point. Head.-The head of the nail is designed to facilitate its use, both while being driven and after in place. The flat head is by far the most common as it is best suited to general use. The diameter of the flat head may be en- larged to obtain maximum bearing area in specific applications such as roofing and sheathing nails. A cupped brad head is used on finishing nails to make the head less visible after ·being driven. Similarly, countersunk or casing heads (such as those used on flooring nails) allow the nail to be driven flush with the surface. Double-headed nails are designed for easy removal in tem- porary applications; embossed heads are used· to identify some characteristic of the nail; round or oval heads are used for decorative effects; and projec- tion heads are designed for special purpose nails. such as shade. roller pins. Various combinations of these basic heads may be used in. such special applica- tions as gutter spikes with countersunk oval heads. Several head designs are shown in figure C-1. Figure C-'-1.-Types of nail heads.. T 'I •• T IFlat Button Sinker Countersunk ·Casing • T I -I IRound Oval Cupped brad Projection Headless .., ,...... Cf Cf .y Hook Doub le-headed Numeral Lettered Curved Source: Sales brochure of Independent Nail, Inc. A-45,. Shan~.--··Jhe. shank, of the_ :oai_l can be described in terms of it.~ length, diame~er-, surface tex~,u.re, al')d finish. Wire nail. sizes are .standardized by length V and designate.d in .t~rms of "penny" size. The origin of this method;. . . of designations is not known, but is probably found in the English system of .. measurements. A 16-penny nail was likely one of such size that 1,000 weighed . ;·. - approximately 16 pounds. Such a nail would have been.known as a 16-pound nail and designated 16d, the letter 11 d 11 being the English symbol for pound. As the letter 11 d 11 is also the symbol for· the English penny, the two terms probably came to be used interchangeably_. Today, penny (or 11 d 11 ) size indicates a de- finite length (see figure C-2) regardless o.f weight, which varies with Figure C-2 .--Nails sizes, by "penny" (d) designations (length and wire gauges) P,1~~........ . ~,,,,,2! .... No. ~; 4 L(l\(~ 20-1 In. a No. 15 ~·nm~~~ ...... •·· ' ~ Ult ti~ 30-11,~ In. a No.'' ..;;;;;;;; llLW~ 40-1% In. a No. 121f,i ~,,,,,~~~ - 4 In. a No. 6 ~-- ~ '"""'~ 50-FI~ In. a No. 12% ---.-;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;Rllill~ll~L~~ 60-2 In.• No.111/2 ~,,,,,,~6~-31,'.! In. a No. 8 ~nim,~---iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii....., _c:::;;;;;;:;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;J~ilw.w.~~~ii 70 - 21/& In. a No. II 1/2 It"" 120 -314 In. a No. 9 W:U:LL.~ 80-21f:l In. a No. 101/4 ~,,,,,~OD- 3In. a No. 9 Li.LLCCLL~ 90- 2% In. a No. 1014 :-·- Source~ Sales brochure of ·Republic· Steel Corp • . J/ Length is generally measured from the underside of the head to the tip of the point. A-46 diameter. (or gauge) and -type,· of head. Gauge. is also geri·erally standardized for specific-penny nails -as· indicated in ·f-igure c-2·, but customers ·may· specify non-standard gauges with most suppriers; · A listing of gauge sizes is pre- sented in figure C-3. · , ' Figure C-3.--~ire gauge sizes, by gauge numbers and by diameters. Source: -·88 .. -r • Diameter Gag~. (in~hes) .2830 . " e· 2 .262.5 e 3,, .2,37 -4 .22.53 •. 5 ,2070 • '·.• .···~>.;:;;·_,_1920_ • "7 • a .1620 •• . ~· 9 ._,.. ,•>-··.y493. ·>•, ••..•; ••:··· • • • • • • • 10 .13.SO 11 .120.S ... "...1• •• 12 13 .091.5 14 .0800 1~ .0720 16 .062.S 17 .. - ..05!10 ~ 18 ....0,75 19 .0'10 20 .03,8 21 .0317 22 .0286 Sales brochure of The ~illwood ~uf~_c.~uring C(). A-···4 7. Most nails, impor~.ed : ~ . ; '•: as well as ~om~stically produced, have smooth shanks. For specia~ ~ses, howeve,r, barbs, rinc:Js, o.r threads .may be added to the shank during prt)duction. Nail shanks are u.sually ·bare metal (called ;'brigh.t"), but may also be tre~ted to gain .. special properties. z.inc· coating. ·- :·,. ';' ,' ..•·' ·- • • .I ' (or galvanizing), for example,. imparts _corro~ion.resista.nce .. Cement or resinI J, • ~ ,' • ' • coating gives the nai 1 extra holding power. When a cement-coated nai 1 is driven, the resinous coating melts under the heat of friction and forms a tighter bond between the nail and the wood. Any nail may also be blued or annealed (softened). Point.--Nail points are designed to best facilitate driving while causing the least possible dama9~ to the wood (or other medium). The diamond point (figure C-4) is the most common. and is well suited for general commercial use. It has hi9h holdin•J power, but tends to cause splitting in dense woods. Blunt points are preferred when working with such dense woods (e.g., hardwood flooring, trim, and shingles) since th<~y tend to n'!duce the danger of split- ting by breaking the wood fibers upon entry. Sharper points force the wood fibers apart, thus setting up strains which induce splitting. Chisel points also reduce the risk of splitting by cutting through the wood fibers Figure C-4.~Types of nail points. ~ ~ u v v D Regular Long Sheared Sheared diamond diamond Bltmt Conical Needle bevel Chisel square Source: Sales brochure of Independent Nail, Inc. A-48 and are ·principally used on larger nails. Needle and conical points are largely used in applications wh.ich requi.re fast hand nailing. Nails with th~~s~~ poinb ci.r·o ~~asily :itarted with a light· tap of 'the hammer or ev~n by hand. Other points designed for special uses include side points, duck-bi 11 pl)ints, sheared bi:wel points, and sheared squar~ p0ints. ,.· UNITED STATES iNTERNATIONAL TRADE COMMISSION WASHINGTON. 0 C. 20'36 OFFICIAL BUSINESS ADCIRUS COlllU.1Kllt lllQUDTID ADDRESS CHANGE O Remove from List D Change as Shown Please detach address label and mail to address shown above. Postage And Fees Paid U.S. International Trade Commission Permit No. G-253 ~UJLMAIL
Investigation 731-TA-246 is a U.S. International Trade Commission antidumping (AD) proceeding on Brazing Copper Wire and Rod from New Zealand and South Africa, Invs. 731-TA-246-247 (Review). The ITC determines whether U.S. industry is materially injured (or threatened) by imports under investigation; Commerce determines whether dumping or subsidization is occurring. Both findings are required for an AD/CVD order to be issued.
731-TA-246 is in the review phase, with status completed. Review phase — typically a sunset review (every 5 years) to determine whether revoking the order would lead to recurrence of dumping/injury. Affirmative findings keep the order in force; negative findings revoke it.
Not yet. 731-TA-246 has not produced an AD/CVD order in Tandom's catalog. If both Commerce and the ITC issue affirmative final determinations, an order would issue and link to this investigation. Until then, no cash deposits apply.
Tandom guides relevant to AD/CVD investigations
Cash deposit cascade, separate rates, all-others, and PRC-wide rates. Worked example on case A-570-910 (galvanized welded steel pipe from China) with three exporter-specific rates.
Open resource
Scope text is authoritative; the HTS list is illustrative. Read scope, find past rulings, and file a 19 CFR 351.225 inquiry. Worked example on case A-570-106 (wooden cabinets from China).
Open resource
The USITC publishes investigation determinations and milestones on its Investigations Data Service (IDS) at ids.usitc.gov. Tandom's catalog re-syncs from IDS daily; new phases, votes, and determinations appear here within 24 hours of USITC publication.
A practical workflow for checking antidumping and countervailing duty exposure on a US entry. For brokers and ops teams who need the answer before filing.
Open resource