Final US Anti-Dumping Duties on Chinese Copper Pipe/Tube Announced

SHANGHAI, Oct. 8 (SMM) -- The final determination of anti-dumping tariffs on Chinese copper pipe/tube have been announced by the US Department of Commerce on September 27th, and now require  anti-dumping duties between 11.25% to 60.85% on seamless refined copper pipe/tube originating from China.   
 
On 6 May 2010, the US Department of Commerce set preliminary anti-dumping duties between 10.26% and 60.50% on seamless copper pipe/tube. According to US Trade Remedy Law, following the final verdict from the US Department of Commerce, the US International Trade Commission will make its own final decision before the US Department of Commerce announces anti-dumping tariffs in the case. The US International Trade Commission's final decision is expected on November 8th. 

During 2009, the US imported USD 233 million of copper pipe/tube from China. If TC/RC of copper pipe/tube was estimated as USD 1,000/mt, and using an average copper price of USD 5,200/mt based on average LME copper prices in March 2009, SMM estimates  China's exports of copper pipe/tube to the US were approximately 37.6 kt. China's total exports of copper pipe/tube in 2009 were 164.1 kt, so exports to the US accounted for 22.91% of China's copper pipe/tube exports in 2009. 

SMM has contacted copper pipe/tube producers related to the issue which stated that some local copper pipe/tube consumers in the US, such as refrigeration equipment and air-conditioner producers, are willing to absorb the anti-dumping tariffs because copper pipe/tube from China will still be cheaper than American-made copper pipe/tube even with the 60% anti-dumping duty.  

SMM believes a 60% anti-dumping duty will eliminate most of the price advantage for Chinese copper pipe/tube, and even if some goods are still cheaper than US goods, it will be much less so. In addition, some consumers in the US may give up importing copper pipe/tube from China given expectations of more RMB appreciation. In this context, China's exports of copper pipe/tube to the US are expected to fall sharply.

China's copper pipe/tube producers may seek other countries for exports or turn to domestic sales to replace lost US market share. SMM believes operating rates at domestic copper pipe/tube producers will not fall due to the anti-dumping duties. China's total output of copper pipe/tube was approximately 1.9 million mt in 2009, with exports to the US accounting for only 1.98%. In addition, recent strong domestic air-conditioner sales are keeping demand high for copper pipe/tube and will help maintain operating rates at copper pipe/tube producers. SMM believes strong domestic demand can make up the loss of 1.98% in exports to the US.  

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