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Coated Free Sheet Paper From China, Indonesia, and Korea - page 34 / 198

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  • III.

    NO REASONABLE INDICATION OF THREAT OF MATERIAL INJURY BY REASON OF THE SUBJECT IMPORTS

    • A.

      Cumulation

The record suggests some significant differences between the industries in China, Indonesia, and Korea. The industry in Indonesia is significantly smaller than those in China or Korea. The industry in China is less dependent on exports than are the industries in Indonesia and Korea.35 Subject imports from Korea entered the U.S. market in significantly greater volumes, but remained relatively stable over the POI, while subject import volumes from China and Indonesia were both significantly higher in 2005 than in 2003.36 Given these circumstances, it would be reasonable to not cumulate the effects of subject imports. However, for purposes of these preliminary determinations, I exercise my discretion and consider the cumulative effects of subject imports.

B.

Statutory factors

Combined production capacity in China, Indonesia, and Korea is slated to increase in both 2006 and 2007. However, industries in all three countries operated at very high rates of capacity utilization during the POI and are projected to do so in the near future as well. Inventories on hand with foreign producers are modest relative to overall shipments.37 The record indicates that, despite some underselling, subject imports did not have a significant effect on domestic prices, and nothing in the record indicates this is likely to change in the near future. Most importantly, nothing in the record indicates that subject imports will not continue to be concentrated in sheet products. Nothing in the record indicates that demand in the U.S. market will not continue to be concentrated in web products. Therefore the record does not indicate that subject imports will be able to influence volume or prices in most of the U.S. market, which has been and likely will be dominated by the domestic industry. I therefore determine there is no reasonable indication that the domestic industry is threatened with material injury by reason of subject imports.

IV. CONCLUSION

For the reasons stated above, I do not find a reasonable indication that the domestic industry producing CFSP is materially injured or threatened with material injury by reason of subject imports from China, Indonesia, and Korea.

35

CR/PR at Tables VII-3, VII-6, and VII-9

36

CR/PR at Table C-1.

37

CR/PR at Table VII-13.

28

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