U.S. International Trade Commission States International Trade Commission Washington, ... Karen Taylor, and Karl S. Tsuji ... Andrew Miller, Matthew Ogburn,

Embed Size (px)

Text of U.S. International Trade Commission States International Trade Commission Washington, ... Karen...

  • Address all communications toSecretary to the Commission

    United States International Trade CommissionWashington, DC 20436

    U.S. International Trade Commission

    COMMISSIONERS

    Deanna Tanner Okun, ChairmanJennifer A. Hillman, Vice Chairman

    Robert A. RogowskyDirector of Operations

    Marcia E. Miller

    Robert G. CarpenterDirector of Investigations

    Stephen KoplanStephen KoplanCharlotte R. Lane

    Robert B. KoopmanDirector of Economics

  • U.S. International Trade CommissionWashington, DC 20436

    Steel:Monitoring Developments in the Domestic Industry

    (Investigation No. TA-204-9)

    Steel-Consuming Industries:Competitive Conditions With Respect to Steel

    Safeguard Measures(Investigation No. 332-452)

    Volume III: Executive Summaries and InvestigationNo. 332-452 (Report and Appendices)

    Publication 3632

    www.usitc.gov

    September 2003

  • Address all communications toSecretary to the Commission

    United States International Trade CommissionWashington, DC 20436

    Steel: Monitoring Developments in the Domestic Industry(Investigation No. TA-204-9)

    This report was principally prepared by

    Office of InvestigationsBonnie J. Noreen, Supervisory Investigator

    Major Contributors

    InvestigatorsFred H. Fischer and Elizabeth A. Haines

    EconomistJoshua M. Levy

    Financial AnalystsJohn T. Fry, Chandrakant G. Mehta, Mary Pedersen, and Charles Yost

    StatisticiansSteven K. Hudgens and Andrew Rylyk

    Industry AnalystsDennis Fravel, Karen Taylor, and Karl S. Tsuji

    With contributions from:Mara Alexander, Statistician

    Gerry R. Benedick, EconomistMarc A. Bernstein, AttorneyCindy E. Cohen, EconomistWilliam Gearhart, Attorney

    Lita David--Harris, StatisticianCarolyn Holmes, Statistical Assistant

    Ken Kozel, Statistical AssistantHarry Lenchitz, Industry Analyst

    Melissa Rutsch, InternLemuel Shields, Statistical AssistantDarlene Smith, Statistical AssistantNorman VanToai, Industry AnalystLoretta Willis, Statistical Assistant

  • Address all communications toSecretary to the Commission

    United States International Trade CommissionWashington, DC 20436

    Steel--Consuming Industries: Competitive Conditions With Respect to Steel Safeguard Measures(Investigation No. 332--452)

    This report was principally prepared by

    Applied Economics DivisionCatherine DeFilippo, Chief

    James Fetzer, Project LeaderKarl Tsuji, Deputy Project Leader

    Major Contributors

    Office of EconomicsSoamiely Andriamananjara, Edward Balistreri, John Benedetto,

    Cindy Cohen, Michael Ferrantino, Eric Forden, Russell Hillberry, Mary Peterson,Amelia Preece, Sandra Rivera, Marinos Tsigas, and Saba Zeleke

    Office of IndustriesBrian Allen, Larry Brookhart, Gail Burns, John Cutchin, Dennis Fravel, Gerald Houck,

    Harry Lenchtz, Sharon Greenfield, Deborah McNay, and Karen Taylor

    Office of InvestigationsMara Alexander, Steven Hudgens, Kenneth Kozel, Chandrakant Mehta, and James Stewart

    ReviewersArona Butcher, and Mark Paulson

    InternsLarry Chomsisengphet, Andrew Miller, Matthew Ogburn, Anupama Prattapati,

    Ben Randol, Audrey Tafoya, Tiffanie Teel, Shakira Van Savage, and Jamie Wateman

    Supporting assistance was provided by:Cecelia Allen, Diane Bennett, Joyce Prue,

    Paula Wells, Wanda Tolson, and Zema Tucker

    With other contributions from:James Brandon, Vincent DeSapio, William Greene, James Lukes, Dennis Luther, Christopher Mapes,

    Ruben Mata, Josephine Spalding-Masgarha, Heather Sykes, Joann Tortorice,Norman VanToai, Judith--Anne Webster, and Linda White

  • ERRATA SHEET

    Publication No. 3632 Steel: Monitoring Developments in the Domestic Industry (Investigation TA-204-9) and Steel-Consuming Industries: Competitive Conditions WithRespect to Steel Safeguard Measures (Investigation No. 332-452) has been edited sinceits initial publication. The new release of Publication No. 3632 reflect changes in pagenumbering and the tables of contents only. There are no changes to the data or subjectmatter of the publication.

  • ABBREVIATED TABLE OF CONTENTS

    Publication 3632

    Volume I: Steel: Monitoring Developments In The Domestic Industry Investigation No. TA-204-9

    Executive Summaries

    INTRODUCTION AND GENERAL OVERVIEWPart I: IntroductionPart II: U.S. market participantsPart III: Manufacturing processes, product descriptions, and usesPart IV: Global developments (1999-2002) Part V: U.S. developments (1999-2002) Part VI: Current market factors

    CARBON AND ALLOY FLAT STEELPart I: Overview (flat steel) Part II: Industry and market data (certain carbon and alloy flat-rolled steel) Part III: Industry and Market Data (tin)Part IV: Adjustment efforts

    CARBON AND ALLOY LONG STEELPart I: Overview (long steel) Part II: Industry and market data (hot bar) Part III: Industry and Market Data (cold bar)Part IV: Industry and Market Data (rebar)Part V: Adjustment efforts

    Volume II: Monitoring Developments In The Domestic IndustryInvestigation No. TA-204-9 (Part II)

    CARBON AND ALLOY TUBULAR STEELPart I: Overview (tubular steel) Part II: Industry and market data (welded)Part III: Industry and Market Data (fittings)Part IV: Adjustment efforts

    STAINLESS STEELPart I: Overview (stainless steel) Part II: Industry and market data (stainless bar) Part III: Industry and Market Data (stainless rod)Part IV: Industry and Market Data (stainless wire) Part V: Adjustment efforts

  • APPENDIXES Federal Register notices Hearing witnesses Summary tables U.S. producers positions with respect to the section 203 relief Additional carbon and alloy flat steel tables The foreign industries Public price data

    Volume III: Steel-Consuming Industries: Competitive Conditions With Respect To SteelSafeguard Measures, Investigation No. 332-452

    Executive Summaries

    Chapter 1. IntroductionChapter 2. Reported Impact of Safeguard Measures on Steel-Consuming IndustriesChapter 3. Ports and Related-Service Providers: Recent Changes in Competitive Conditions and the Effects of Safeguard RemediesChapter 4. Simulated Impact of the Safeguard MeasuresChapter 5. The Possible Future Impact of Continuing or Terminating Safeguard Measures

    Appendices

    Request letter and Federal Register noticeDescription of steel products subject to the section 203 safeguard measures Hearing calendar Market characteristics and the potential effect of the safeguard measures on steel-consuming industries Financial tables Technical appendix on employment analysis Technical appendix on modeling issues Investigation of ITC Questionnaire Tip Sheet

  • iii

    EXECUTIVE SUMMARYINVESTIGATION NO. 332-452

  • 1 On Mar. 5, 2003, the Commission instituted an investigation under section 204(a) of the Trade Act of1974 (Inv. No. TA-204-9) in order to prepare a report to the President and the Congress on results of monitoringdevelopments relating to the domestic steel industry since the President imposed tariffs and tariff-rate quotas onimports of certain steel products (68 FR 12380, Mar. 14, 2003). In its letter, the Committee requests that theCommission provide its report in this section 332 investigation and its monitoring report in the section 204(a)investigation in a single document. In a Mar. 27, 2003 letter to the Commission, the Office of the United StatesTrade Representative (USTR) referenced the format requested by the Committee and informed the Commission thatUSTR has no objection to receiving the section 204(a)(2) report and the section 332(g) report in a single document. A copy of the request letter from the Committee and the Commissions Federal Register notice of institution of thisinvestigation are contained in appendix A.

    2 The President imposed import relief in the form of tariffs and tariff-rate quotas on imports of certain steelproducts for a period of 3 years and one day, effective March 20, 2002. A description of the import relief ispresented in Chapter 1. Throughout this report, steel will refer to steel products subject to the safeguard measuresannounced by the President.

    v

    EXECUTIVE SUMMARY Introduction

    Following receipt of a request on March 18, 2003, from the U.S. House of Representatives,Committee on Ways and Means (Committee), the U.S. International Trade Commission (USITCor Commission) instituted investigation No. 332-452, Steel-Consuming Industries: CompetitiveConditions with Respect to Steel Safeguard Measures, pursuant to section 332(g) of the Tariff Actof 1930 (19 U.S.C. 1332(g)).1 As requested by the Committee, the investigations analysis wasconducted along sectoral lines, in order to assess the impact of the steel safeguard measures ondiffering segments of the U.S. manufacturing sector and to focus on steel products subject to thePresidents safeguard measures.2

    The report addresses the effects of the safeguard measures on steel-consuming industries and onports and their related services including the following competitive conditions:

    changes in employment, wages, profitability, sales, productivity, and capitalinvestment of steel-consuming industries;

    an examination of the reported effects of the safeguard measures on factors suchas prices for steel paid by consuming industries, steel shortages and availability,the ability of steel consumers to obtain required products or quality specifications,lead and delivery times, contract abrogation, sourcing of finished parts fromoverseas by customers of steel-consuming industries, and the relocation or shift ofU.S. downstream production to foreign plants or facilities;

    the impact of international competitive factors, such as relative differences in steelcosts to foreign steel-consuming industries not subject to