FOR IMMEDIATE RELEASE:
CHINA STEEL INCREASE AND GALVINIZNG MILL SHUTDOWNS CAUSING HIGHER PRICES AND DELAYED SHIPMENTS
June 30, 2017
As one of the largest importers and suppliers of roofing nails from China we wanted to make you aware of the recent events causing a spike in pricing and extended lead times. Over the past week the price of wire rod, the steel used to produce roofing nails, has risen 10% driven by rapid increases in iron ore. The price of wire rod has increased from $3420 RMB to $3750 RMB in one week.
Additionally, many of the galvanizing mills used to coat roofing nails with yellow zinc dichromate have been forced to take mandated closures by the government as part of its pollution control program; some of the galvanizing mills have been shuttered and may not re-open. This is causing a backlog at the roofing nail collating mills, coupled with a strong demand period in the U.S. driven by the strong residential market and storm demand.
Most coil roofing nail plants are fully booked through August production meaning new orders are stretching to November arrivals. Additionally, we are seeing existing orders delayed 30 days or so as galvanizing delays are effecting timely shipments.
The last component, ocean freight, makes up approximately 20% of the landed U.S. cost of coil roofing nails. After being soft all year, ocean freight carriers have large increases announced effective July 1st of nearly $700 per container or approximately $.50 a box. While we do not think that this increase will be accepted, and may likely be mitigated to $200 or even delayed due to light demand for ocean freight, it is an unknown at this point.
As a market leader, CMI will continue to monitor the situation and keep you informed of these conditions driving the market to uncertainty.
CMI is ‘open for business’ and will continue to be a leading supplier of coil roofing nails and other construction nail products.
Thank you for your continued support and please call with any questions you may have.
Continental Materials, Inc. (CMI) is a national supplier of roofing system component materials and known for BUR (built-up roofing) asphalt with “No Smell”™ odor eliminating technology and its WeatherSeal™ protective packaging, All-Weather™ asphalt felts and coated organic rolls, CMI All-Weather™ modified bitumen rolls, SureGrip™ construction fasteners and roofing nails, Continental’s eco-friendly high density fiberboard roof insulation board and a premium line of SecureGrip™ synthetic roof underlayment products that are sold and used widely throughout the country. CMI has provided value added products and superior service to the roofing industry since 1958.
For more information on CMI products, call (215) 884-4930, visit www.continentalmaterials.com or contact your local CMI Sales Representative.