36 percent in 1966; yearend inventories of wall tile increased from 19 percent of annual sales in 1963 to 24 percent in 1966. 1/ The expansion in inventory during this period reflected, in part, the attempt by producers to provide quicker delivery of an increasing variety of types, designs, and colors of ceramic tile. Many firms scrap part of their inventories each year, primarily owing to the obsolescence of the tile. * * * * * * * Prices of domestic and imported tile 2/ Prices in the mid-1960's.--Competition between imported and domestic floor and wall tile has been most intense in the large metropolitan areas along the East Coast. In 1966 nearly 40 percent of total domestic tile output and 80 percent of the imported tile was sold in the 25 metropolitan areas having the greatest amount of housing construction during 1964-65. These 25 areas used about half of all floor and wall tile consumed in the United States in 1966; about 48 percent of the floor and wall tile consumed was domestic and 52 percent, imported. Outside of these 25 areas, 86 percent of the floor and wall tile consumed was domestic and the remainder, imported. 1/ Comparable data on inventories for more recent years are not available. 2/ Extensive price data on ceramic tile are available to the Commission only for the years 1963-66; price data for 1967-69 are in The prices of domestic tile in the United States have been higher than the prices of comparable tile imported from Japan. In 1966 the average prices to distributors 1/ of unglazed white mosaic tile were 44.1 and 28.6 cents per square foot for domestic and imported Japanese tile, respectively (a difference of 15.5 cents); prices of glazed mosaic tile were 52.3 and 32.0 cents, respectively (a difference of 20.3 cents); and those of standard glazed wall tile, 40.0 and 29.1 cents, respectively (a difference of 10.9 cents). Thus, in terms of percentages, prices of domestic tile were 54 percent higher than imported tile for white unglazed mosaic, 63 percent higher for glazed mosaic, and 37 percent higher for wall tile. The differences between average prices to U.S. distributors for domestic and Japanese mosaic tile in 1966 were 7.3 cents per square foot higher for white unglazed and 2.7 cents per square foot higher for glazed than in 1963. Conversely, the spread between average prices to distributors for domestic and imported standard glazed wall tile was 1.8 cents narrower in 1966 than in 1963, indicating increasingly intense price competition for the available market. Average prices for both glazed and unglazed mosaic tile from Japan were about 7 cents per square foot (some 20 percent) lower in 1 Average prices to contractors--who generally function as the second level of tile distribution--range from 3 to 10 cents per 1966 than in 1963. The average price for imported standard wall tile was 1.3 cents (4 percent) lower in 1966 than in 1963. Average prices of domestic floor and wall tile (except white unglazed mosaic) were from 4 to 7 percent lower in 1966 than in 1963; for white unglazed mosaic it was 3 percent higher. Installed floor and wall tile is largely indistinguishable to the ultimate consumer as to the country of origin or the particular manufacturer, and such consumers are not the primary objectives in marketing. Domestic producers direct their promotional and selling efforts largely towards architects, builders, tile contractors, and distributors of tile. Importers generally compete for sales on the basis of price, and their promotional effort is minimal. Prices in the latter 1960's.--In 1969 the actual domestic prices received for standard-grade white and colored wall tile in most U.S. areas were slightly--possibly 5 percent--higher than during 1966-67. However, domestic prices in New York City and some other metropolitan areas in 1969 were quite unstable; many domestic producers sold at prices necessary to meet those of competitors. Thus, although the quoted large-quantity price in 1969 to distributors for domestic white wall tile in the New York City area may have been about 38 cents per square foot, frequently the negotiated domestic price approximated the delivered cost of 31 to 33 cents for Japanese wall tile to importer-distributors in that market area. Available information indicates that the national average price to distributors for domestic bright glazed flat wall tile of standard grade was in the vicinity of 42 to 43 cents per square foot in 1969, compared with 40 cents in 1966; to contractors, the comparable price in 1969 was 49 to 50 cents, unchanged from 1966. It appears that 1/ the distributor-contractor price spread was, on the average, some 2 cents less than in 1966, indicating that contractors were increasingly successful in negotiating favorable prices. For grades of domestic wall tile other than standard, prices were highly variable from company to company, area to area, and even job to job. Meaningful comparisons of prices for domestic and imported glazed mosaic tile are not possible because much of the imported mosaics are unlike the domestic mosaics. A knowledgeable industry source compiled data showing that the average U.S. price of 1" x 1" unglazed, white mosaic tile sold to distributors by domestic producers was 51 cents per square foot in 1968 and 52 cents in 1969, compared with 43 cents in 1963 and 44 cents in 1966. Such average prices for the unglazed mosaic tile are estimated to be some 10 to 15 cents higher than prices for comparable imported unglazed mosaic tile. 1 Both domestic and imported wall tile are sold largely through distributors and contractors. Many distributors of imported tile are Data respecting average prices to distributors for imported wall tile are not available. Importers and distributors contacted during the investigation reported, however, that such prices probably were from 1 to 3 cents per square foot higher for tile from Japan in most markets in 1969 than in 1966, and 1 to 3 cents lower for tile from the United Kingdom. As a result, British wall tile has been frequently lower in price than the Japanese in certain areas. For instance, in New York City the large-quantity, distributor price (i.e., landed, duty-paid) for white wall tile reportedly was 29 to 31 cents for British and 31 to 33 cents for Japanese. In most other sections of the country, prices were severals cents higher than in New York City. All or nearly all imported wall tile is of standard grade. Importers and distributors of imported glazed ceramic mosaic tile were in accord that prices of such products have increased 10 to 20 percent in the past 3 years. Such a situation would not be unexpected, inasmuch as imports are dominant in a market that includes only small amounts of the much higher priced domestic article. Prices received by the Cambridge Tile Mfg. Co.- * * * * |