Saccharin from China - USITC

***. 113 Chinese subject producers’ most recent reported capacity, *** pounds in 2007, wasalmost seven times PMC’s highest reported capacity level during the review period, and dwarfed PMC’smost recent reported capacity of *** pounds in 2008. 114 Among the five principal Chinese producers,subject producer Shanghai Fortune received a zero dumping margin in its most recent administrativereview; therefore, imports produced by Shanghai Fortune, while still subject to the order, currentlyenter the U.S. market at a zero deposit rate. 115Prices for the domestic like product and subject imports were substantially higher in 2008 thanin earlier years of the review period. Industry participants attributed this to a world-wide shortage ofsaccharin due to a number of factors including the temporary, government-ordered closure of the largestChinese subject producer (Suzhou Fine Chemicals Group Co., Ltd.) in October 2007, the temporaryshutdown of all subject producers from August until September of 2008 during the Beijing OlympicGames, and ***. 116 However, prices in 2009 are reportedly more in line with pre-2008 prices, and mostindustry participants also reported that U.S. saccharin prices were unlikely to rise within the reasonablyforeseeable future. 117*** led the domestic industry to lose considerable market share during the review period.Accordingly, non-subject imports’ market share increased by *** percentage points during the reviewperiod, although subject imports gained substantially more market share than non-subject importsduring that time. 118 Non-subject imports’ market share declined at the end of the review period, fallingfrom *** percent in 2007 to *** percent in 2008, whereas subject imports more than doubled theirmarket share in the final year of the review period, increasing from *** percent in 2007 to *** percentin 2008. 119C. Revocation of the Antidumping Duty Order on Subject Imports Is Likely to Leadto Continuation or Recurrence of Material Injury1. Likely Volume of Subject ImportsIn evaluating the likely volume of imports of subject merchandise if the order under review isrevoked, the Commission is directed to consider whether the likely volume of imports would besignificant either in absolute terms or relative to production or consumption in the United States. 120 Indoing so, the Commission must consider “all relevant economic factors,” including four enumeratedfactors: (1) any likely increase in production capacity or existing unused production capacity in theexporting country; (2) existing inventories of the subject merchandise, or likely increases in inventories;(3) the existence of barriers to the importation of the subject merchandise into countries other than theUnited States; and (4) the potential for product shifting if production facilities in the foreign country,which can be used to produce the subject merchandise, are currently being used to produce otherproducts.112(...continued)PMC Posthearing Br. at Ex. 3.113CR at IV-13; PR at IV-7.114CR/PR at Tables IV-5 & C-1115CR/PR at Table I-2.116CR at V-4 & n.3; PR at V-3 n.3; CR at IV-13; PR at IV-7.117See e.g., Hearing Tr. at 24.118CR/PR at Table C-1.119CR/PR at Table C-1.12019 U.S.C. § 1675a(a)(2).16