(Yicai Global) March 9 -- Shares in Chinese medical glove manufacturer Intco Medical Technology have hit the 10 percent daily limit today after the United States exempted its primary product from import duty to ease a surge in demand due to the Covid-19 epidemic.

The Shandong province-based firm's stock [SHE:300677] had hit CNY51.48 (USD7.42) by 10.10 a.m. and has remained there since.

The Office of the United States Trade Representative has granted the firm a 100 percent exemption on import tariffs for its medical nitrile gloves, Intco said in a statement yesterday. The US cut tariffs on the gloves to 7.5 percent last month, from 15 percent.

Washington has waived import duty on more than 100 medical products from China so far, including 27 importers' medical-grade nitrile gloves, the office said on March 5.

The statement did not disclose why the US had exempted the gloves from its import duty, though the Wall Street Journal suggested it is due to a rise in demand as people look to protect themselves from the novel coronavirus outbreak. The US has also waived tariffs on similar products, including masks, disinfecting wipes, and surgical gowns.

Intco's medical- and industrial-grade polyvinyl chloride gloves destined for the US were exempt from duty as part of first-stage economic and trade talks between Beijing and Washington in December, the statement added. Tariffs on its industrial-grade nitrile gloves sent to the US also fell to 3 percent last month from 28 percent, the firm said.

The company is also ramping up capacity as demand for gloves soars during the epidemic. It expects to add 20 new acrylonitrile glove production lines this year, adding 6 billion pairs to its annual capacity, according to the statement.

Editor: James Boynton