I was looking at the import statistics for HTS 6810.xx for last 8 quarters on USITC Import monitoring site:
Above data is representing % contribution by some of the key Quartz exporting countries to total US Quartz import. Intrigued by the fluidness of supply substitution aspect in the overall market:
- China had a sharp drop in US import contribution within 2 consecutive quarters of Q4’18 and Q1’19.
- Significant part of this vacuum was filled by India and Vietnam on immediate basis - as if the domestic industry had that much of spare capacity to stretch.
- Next, Q4’19 Indian industry came under scanner due to the ADD legal proceeding.
- Part of Indian volume shifted to Malaysia - again on almost real time basis.
Next, below is the realization data (USD/Sq.FT) based on Quartz export volume and Realization data from hardsurface website
| Oct’20 | Sq. Ft | USD | Realization |
|---|---|---|---|
| China | 28,578 | 115,440 | 4.04 |
| India | 3,990,694 | 23,488,028 | 5.89 |
| Malaysia | 1,339,234 | 9,777,326 | 7.30 |
| Thailand | 156,884 | 1,189,432 | 7.58 |
| Czech Republic | 158,994 | 1,215,121 | 7.64 |
| Turkey | 729,932 | 6,268,159 | 8.59 |
| Philippines | 215,795 | 1,943,795 | 9.01 |
| South Korea | 646,663 | 5,947,395 | 9.20 |
| Italy | 390,687 | 3,635,760 | 9.31 |
| Spain | 1,915,425 | 18,586,548 | 9.70 |
| Vietnam | 2,053,106 | 20,099,142 | 9.79 |
| Taiwan | 575,600 | 5,710,622 | 9.92 |
| Israel | 772,191 | 7,996,443 | 10.36 |
| Brazil | 159,338 | 1,797,561 | 11.28 |
| Canada | 831,673 | 9,714,784 | 11.68 |
China has been lowest price/Sqft exporter followed by India for Quartz to US market. Their realization was way moderate as compare to other key players. Other two player who has emerged very strong also looks competitive as compared to rest all.
@rupaniamit, @Anant, @rupeshtatiya - Would really help if you guys can cover this aspect in the upcoming session. From a sustainability perspective, its really important to understand:
- what is the key differentiated factor between players/geographies.
- At large, what really drives this market? cost or specifications.
- What is working to India’s advantage from cost perspective? is it labor, scale or something else?**
To me, purely based on data, it looks like Quartz import market is very sensitive to price. Purely based on pricing power some of the exporting countries - Malaysia and Vietnam particularly - are gaining significant market.
Regards,
Tarun