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Coated Free Sheet Paper From China, Indonesia, and Korea - page 60 / 198

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percent.9 U.S. imports of CFS paper from Indonesia are also concentrated on the west coast, accounting for 52.8 percent of total U.S. imports from Indonesia during 2005, followed by imports to the Great Lakes region, accounting for 26.9 percent of imports from Indonesia, and imports to the east coast, accounting for 17.0 percent of imports. U.S. imports of CFS from Korea are also concentrated on the west coast, accounting for 63.3 percent of total imports from Korea during 2005, followed by imports to the east coast, accounting for 25.5 percent of imports of CFS paper from Korea.

U.S. inland shipping distances for U.S.-processed CFS paper were compared with those for imports from China, Indonesia, and Korea. For U.S. producers, *** percent of their U.S. sales occur within 100 miles of their storage or production facility, *** percent were within distances of 101 to 1,000 miles, and *** percent were at distances of over 1,000 miles from their facilities. For imports from China, *** percent of sales occurred within 100 miles of importers’ storage facilities, *** percent were within 101 to 1,000 miles, and *** percent were over 1,000 miles. For imports from Indonesia , *** percent of sales occurred within 100 miles of importers’ storage facilities, *** percent were within 101 to 1,000 miles, and *** were over 1,000 miles. For imports from Korea , *** percent of sales occurred within 100 miles of importers’ storage facilities, *** percent were within 101 to 1,000 miles, and *** percent were over 1,000 miles.

Petitioner also reported that shipping coated free sheet in web-roll form is more efficient than shipping sheets because web rolls are easier to stack.10 Respondent importers, on the other hand, reported that shipping web rolls is less efficient than shipping sheets because they cannot be containerized, resulting in more unused space in the shipping vessel, and that transportation costs per ton are higher for web rolls. 11

Five of nine responding U.S. producers reported that the majority of their sales are made from inventory, with the remainder reporting that the majority of sales are produced to order. Lead times for delivery of CFS paper for U.S. producers ranged from to one day to four weeks on sales from inventory and ranged from 10 days to 30 days on sales produced to order. For importers, seven of nine responding importers reported that the majority of their sales are made from inventory. Lead times for delivery of CFS paper for importers ranged from one day to three days on sales from inventory and ranged from three weeks to 120 days on sales produced to order. Respondent importers reported that due to the longer lead times associated with imported product, merchants buying imports must hold them in inventory and thus face additional handling costs. 12

SUPPLY AND DEMAND CONSIDERATIONS

U.S. Supply

Allegations of Allocation

One importer, ***, reported that it was placed on “soft allocation”, or a reservation system, by U.S. producers in 2004 for web rolls, sometimes of a certain basis weight.13 This importer also reported that it and other customers, including ***, were put on “soft allocation” in January 2006, citing a letter

9

10

See table IV-3. Petitioner’s postconference brief, exh. 1, p. 11.

11 Conference transcript, pp. 103-104 (Anderson), 120 (Dragone), and 167 (Hunley). Korean respondents’ postconference brief, p. 10. Chinese respondents’ postconference brief, p. 7.

12

13

Conference transcript, pp. 106, 140 (Anderson) and p. 109 (Cho). Conference transcript, pp. 112-113 (Dragone).

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