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were classified as sheets over the same period.39 The petitioner has reported that the most significant competition from imports is in the market for sheets.40

Both the petitioner and respondents agree that production capacity in non-subject countries has declined, particularly in Canada, the largest source of non-subject imports.41 The data available in these preliminary investigations on production capacity in Canada shows that capacity declined from *** metric tons in 2003 to *** metric tons in 2004 and then increased to *** in 2005.42 These same data show that production capacity in Western Europe increased steadily from *** metric tons in 2003 to *** metric tons in 2005.43 However, the exact methodology by which these capacity figures are calculated is unclear. Therefore, based on the data available in these preliminary investigations, I determine that non- subject imports do not have sufficient capacity to replace subject imports if the orders were to be imposed.

In light of the fact that the prices and average unit values of non-subject imports were generally higher than those of subject imports and because I determine that non-subject imports lack the capacity to replace subject imports sufficiently, for purposes of these preliminary determinations I determine that non-subject imports would not negate the benefit fo the orders on subject imports.

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CR/PR at Appendix Table E-6 and Appendix Table E-7. Transcript at 85 (Mr. Tyrone). Transcript at 84-85 (Mr. Tyrone); 105 (Mr. Anderson); 132 (Mr. Klett) and 151 (Mr. Dragone).

42 Petitioners’ response to Department of Commerce’s Nov. 3, 2005 request for clarification submitted on Nov. 14, 2006, exhibit 1.

43 Petitioners’ response to Department of Commerce’s Nov. 3, 2005 request for clarification submitted on Nov. 14, 2006, exhibit 1.

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