Zhejiang Hailiang, IUSA Face U.S. Import Duties on Copper Pipe and Tube

Zhejiang Hailiang Co. and IUSA SA are among Chinese and Mexican makers of copper tubes subject to import duties imposed by the U.S. Commerce Department yesterday for selling their products at below-market prices.

Zhejiang, China’s largest publicly traded copper-tube maker, faces preliminary U.S. duties of 58.69 percent, the department said in a statement. Other Chinese makers will pay an average of 34.48 percent. IUSA is subject to 29.52 percent, with other Mexican companies paying an average 30.9 percent.

Companies including units of Memphis, Tennessee-based Mueller Industries Inc. and Cerro Flow Products LLC in St. Louis petitioned for the duties in September, saying seamless refined copper pipe and tube were being dumped in the U.S. at a discount or below the cost of production. The tubes are used in plumbing and for carrying liquids or gases in heating or refrigeration systems.

The decision yesterday is the second of four needed to make the tariffs final. Chinese and Mexican copper tube makers will have to deposit the duties for products shipped to the U.S. while the case is pending. The final ruling is scheduled for Nov. 8.

U.S. imports of the tube from China totaled $233 million in 2009, the Commerce Department said. Products from Mexico were $130 million. The highest tariff for China is 60.5 percent, and the biggest for Mexico is 32.27 percent, the department said.

To contact the reporter on this story: Mark Drajem in Washington at mdrajem@bloomberg.net.

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