StatWatch September 2018: Quartz’s Ebb Tide

By Emerson Schwartzkopf

The quartz-import tsunami from China receded at U.S. ports-of-entry in September, but the damage isn’t over yet.

The 9.1 million ft² of Chinese quartz surfaces sent to the United States in September ranks as the fourth-largest month of shipments in history – but it’s almost 30% lower than the high mark of 12.9 million ft² in August, according to Stone Update analysis of surface-import data from the U.S. International Trade Commission.

The decline came as the market adjusted for a series of tariffs brought by the Trump administration and an unfair-trade petition by U.S. manufacturer Cambria. Shipments will likely continue to drop through the rest of the year, but problems with a possible retroactive tariff assessment may make for some extremely expensive trouble for importers.

 

QUARTZ SLABS

The decline from August to September in Chinese quartz-surface exports didn’t cause the sector to implode. The 14.6 million ft² sent worldwide to the United States in September is 31.9% higher than shipments at the same time last year; China’s 9.1 million ft²is 56.2% better than September 2017 totals.

Of the other four major (>500,000 ft²) quartz-surface exporters in September, only Spain saw a decline (1.6 million ft², -27.5%) from the same time last year. Israel showed the best performance, gaining 49% from September 2017 with its 820,704 ft² this year.

The end of huge shipments of quartz surfaces from China isn’t the end of the story, however. A decision by the U.S. Department of Commerce could mean that tariffs as high as 314% announced in November could be imposed retroactively on an unknown number of shipments received from mid-August to mid-November.

 

U.S. Imports: Quartz Slabs (square feet)       Sep-18 Sep-17 Change TOTAL 14,605,708 11,072,598 31.9% China 9,129,563 5,846,326 56.2% Spain 1,610,753 2,221,055 -27.5% India 1,134,956 874,233 29.8% Israel 820,704 550,810 49.0% Canada 616,771 466,195 32.3% Turkey 292,304 120,362 142.9% Vietnam 202,254 360,591 -43.9% Portugal 180,198 74,131 143.1% Italy 147,788 169,133 -12.6% Czech Republic 105,615 34,315 207.8% Brazil 92,699 54,401 70.4% Germany 67,253 73,959 -9.1% Thailand 60,665 6,706 804.7% Korea 52,991 61,925 -14.4% Taiwan 42,840 3,897 999.4% Hong Kong 41,075 39,288 4.5% France 4,628 0 N/A Belgium 2,648 10,409 -74.6% Mexico 0 9,031 N/A Switzerland 0 6,200 N/A Australia 0 4,263 N/A Source: U.S. International Trade Commission; Stone Update analysis

 

WORKED GRANITE

Leave to granite to supply some good news in September hard-surface imports, as overall shipments to the United States hit 129,391 metric tons – a 9.7% increase from the same time last year.

Brazil may be slowly moving into U.S. export growth, with September’s 66,266 metric tons marking a monthly high for 2018. It’s been a fits-and-starts year for Brazil, with a sub-par first quarter, growth in April-May, a major slide back of 20,000 metric tons in June-July, and recovery in August-September.

The Trump administration (or Section 301) blanket tariffs of 10% on Chinese goods had only a small effect – if any – with granite, with shipments declining only 3.5% from September 2017. India continued with a strong 2018; not so with Spain, Canada and Italy, with major exports drop-offs from this August and in year-to-year comparisons.

 

U.S. Imports – Worked Granite (metric tons)       Sep-18 Sep-17 Change TOTAL 129,391 117,941 9.7% Top Countries Brazil 66,266 53,677 23.5% China 25,943 26,879 -3.5% India 24,913 21,063 18.3% Spain 5,592 6,939 -19.4% Canada 2,950 5,069 -41.8% Italy 2,318 3,217 -27.9% Source: U.S. International Trade Commission; Stone Update analysis

WORKED MARBLE

Turkey remained the master of worked-marble volume in September, increasing its shipments by 57.6% from September 2017. Turkey also provided almost all of the gain in U.S. export tonnage for the sector, with the 43,239 metric tons showing a 18.2% rise from the previous year.

Whatever you call the 10% general tariff on Chinese goods, it failed to deter marble shipments; China’s 7,391 metric tons made for a healthy 21.7% year-to-year increase for September.

 

U.S. Imports: Worked Marble (metric tons)       Sep-18 Sep-17 Change TOTAL 43,239 36,592 18.2% Top Countries Turkey 16,929 10,739 57.6% China 7,391 6,073 21.7% India 6,969 6,583 5.9% Italy 6,098 7,179 -15.1% Brazil 2,886 3,051 -5.4% Greece 864 791 9.2% Spain 812 720 12.8% Source: U.S. International Trade Commission; Stone Update analysis

 

TRAVERTINE

 

U.S. Imports: Travertine (metric tons)       18-Sep 17-Sep Change TOTAL 23,163 31,563 -26.6% Top Countries Turkey 17,538 23,834 -26.4% Mexico 3,455 3,800 -9.1% China 843 710 18.7% Italy 672 2,361 -71.5% Peru 228 402 -43.3% Spain 130 150 -13.3% Source: U.S. International Trade Commission; Stone Update analysis

 

OTHER CALCAREOUS

 

U.S. Imports: Other Calcareous  (metric tons)       18-Sep 17-Sep Change TOTAL 14,327 17,210 -16.8% Top Countries Canada 3,212 3,824 -16.0% Turkey 2,791 4,132 -32.5% China 2,669 3,622 -26.3% Italy 1,074 474 126.6% Portugal 981 1,003 -2.2% France 555 255 117.6% India 523 437 19.7% Source: U.S. International Trade Commission; Stone Update analysis

 

OTHER STONE

 

U.S. Imports: Other Stone (metric tons)       Sep-18 Sep-17 Change TOTAL 41,163 44,425 -7.34% Top Countries Brazil 19,267 23,769 -18.94% India 12,768 11,699 9.14% China 4,467 4,286 4.22% Italy 1,396 1,926 -27.52% Canada 1,363 2,444 -44.23% Source: U.S. International Trade Commission; Stone Update analysis