Citric Acid and Certain Citrate Salts from Belgium, Colombia,

and Thailand

Petitioners' Presentation

ITC Prehearing Staff Conference

June 23, 2017

1. Common Types and Forms of Citric Products

Products Hydration Particle size

Grade* Package type

Anhydrous USP/

25 kg/50 lb bags

Citric Mono-hydrate Granular Pharmaceutical Drums

Acid Solution

Fine granular

F C C / Food

Industrial

Supersack

Potassium citrate Mono-hydrate

Powder

Bulk Truck (liquid)

Sodium citrate

Dihydrate

Anhydrous

Rail Car

(liquid)

*AII citric manufacturers comply to all international standards: USP, FCC, EP, JECFA, JP

2. Archer Daniel Midland Facility In Southport, North Carolina

5. Applications Overview

Pharmaceutical

Food 19%

Beverage 50%

Detergent 15%

6. U.S. Consumption of Soft Drinks is Declining

Exhibit 12: US Per Capita Consumption of Soft Drinks (Gallons)

US Per Capita Consumption of Soft Drinks (Gallons)

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Source: NPD Group. 2015 estimate

7. Subject Import Volume and AUVs for Citric Acid: 2011-2016

^ V o l u m e (1000 lbs) AUV($/lb.)

180,000 $0.85

2011 2012 2013 2014 2015 2016

Source: USITC dataweb (HTS 291814).

8. 2015 Citric Acid Market Share of Imports in Subject Countries

China Share • All Other Imports Share

120%

Belgium Colombia Thailand

Note: 2015 was the latest data available. Belgium import market share calculated as EUROSTAT imports divided by apparent consumption (production (assuming operation at full capacity from CEH) plus imports and minus exports (calculated from Belgian imports into all countries on COMTRADE)). Colombian import market share calculated as GTA imports divided by CEH Colombian consumption. Thai import market share calculated as GTA imports divided by CEH consumption. Source: Petition at Exhibit 1-2 and Global Trade Atlas, COMTRADE and EUROSTAT import statistics.

9. U.S. Operating Profits and Subject Import Volume: 2011-2016

0.00

2011 2012 2013 2014 2015 2016

Source: USITC publications, USITC dataweb and Petition exhibits 1-11 and 1-14.

300

10. 2015 Citric Acid Supply and Demand: Subject Countries

• Supply (Capacity) • Demand (Domestic Consumption)

250

200

150

100

50

Belgium Colombia Thailand

Note: 2015 was the latest data available. Belgium apparent consumption calculated by adding production (assuming operation at full capacity from CEH) and imports and subtracting exports (calculated from Belgian imports into all countries on COMTRADE since Belgian export data is suppressed). Source: Petition at Exhibit 1-2 and COMTRADE and EUROSTAT import statistics.

Colombian Import Volume and AUVs for Citric Acid: 2011-2016

m n © o o

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

IVolume (1000 lbs)

August 2013 -Exclusive

distribution agreement

ends

•AUV ($/lb.)

$0.85

$0.80

$0.75

$0.70

$0.65

$0.60

$0.55

$0.50

$0.45

$0.40

2011 2012 2013 2014 2015 2016

Source: USITC dataweb (HTS 291814).