Dumping margins calculated for clear figured glass with thicknesses
3mm, 5mm, and 5.5mm ranged from (US$37.11) to (US$74.48) per MT.
4.4 Determination
of Material Injury and Causal Linkage
Volume of Imports
Total imports of clear figured glass were increasing from 1997 to
1999. Imports grew by 30% in 1998 and 116% in 1999 from the 1997
level.
Of the total Philippine CFG imports during the POI, 29% was accounted
for imports coming from PROC and 71% from other countries. On a
quarterly basis, imports from PROC increased by 42.28% in the 2nd
quarter of 1999, contracted by 12% in the 3rd quarter and
increased by 116% in the 4th quarter.
On the other hand, quarterly imports from other countries moved in
opposite directions - - a decrease by 10% in the 2nd
quarter, an increase by 4% in the 3rd quarter and a 35%
drop in the 4th quarter.
Price Effect
Price undercutting occurs when the prices of dumped imports are
significantly lower than the price of the like product.
Price depression occurs when the price of dumped import forces down
the price of like product.
Price suppression occurs when the prices of dumped imports prevent
increases in the price of like product which would otherwise have
occurred.
There was no evidence of price undercutting, price depression nor
price suppression.
Market Share
The estimated market share of RAGC declined from 90% in 1997 to 84% in
1998 and further to 76% in 1999 for clear figured glass. The share to
total imports grew to 30% in 1998 and further to 66% in 1999.
During the POI, the share of clear figured glass imports from PROC
increased from 18% in the 1st quarter to 26% in the 2nd
quarter. In the 3rd quarter, its share dropped to 23%.
However, it recovered in the 4th quarter as its share grew
to 50%.
RAGC’s market share for clear figured glass during the POI,
decreased to 72.17% in the 2nd quarter compared with the
79.64% share in the 1st quarter of 1999. It improved to
78.16% in the 3rd quarter but fell slightly to 75.91% in
the last quarter.
It is observed that the surge in total imports of clear figured glass
from Taiwan and Korea contributed to the decline in the market share
of RAGC.
Domestic Prices
Ex-factory domestic selling price of local clear figured glass for all
sizes is higher than the landed cost of CFG.
Production, Sales
and Inventory
Production volume during the POI dropped by 18% from the 1998 level.
Likewise, sales in 1999 were reduced by 2% from the 1998 level.
The decrease in the production output is attributed to the surge of
imported clear figured glass coupled with market contraction due to
the regional crisis.
Capacity Utilization
RAGC had a maximum capacity of producing 43,796 MT of CFG in 1997.
RAGC was able to utilize 67% of capacity in 1997 and 68% in 1998.
However, in 1999 production slowed down to 56% utilization.
The decline in capacity utilization during the period is attributed to
the surge in imported CFG coupled with market contraction due to the
regional crisis.
Cost of Production
From the 1998 level, cost of production for CFG increased by 42% in
the 1st quarter and 27% in the 2nd quarter of
1999. Comparing the 3rd and 4th quarters of the
POI with the respective quarters in 1998, the cost of production
decreased by 16% and 25%, respectively.
RAGC’s cost to produce is relatively higher than that of PROC
manufacturers because the former imports most of its raw material
requirements.
Profitability
RAGC’s income from operation for clear figured glass declined by 45%
and 2% in 1998 and 1999.
The decline in profitability is attributed to declining sales which
were affected by the surge in total imports of CFG, as well as market
contraction.
Return on Sales
Declining sales and profits led to low return on sales in 1999.
Investment and
ability to Raise Capital
RAGC suffered a decline in its income from operation and affected the
ability to raise capital. The decrease in income from operation can be
attributed to competition from low-priced normal (undumped) imports
from other countries, high cost of production and contraction of the
local market due to the regional crisis.
Employment and Wages
The surge in imported CFG affected employment and wages as the company
undertook cost cutting measures. In order to reduce operating expenses
and consequent losses, the company decided to effect a reduction in
manpower.
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