FOR IMMEDIATE RELEASE:
Nail Supply/Galvanizing Process Shut-Down Update
August 25, 2017
CMI continues to be committed to keeping our customers apprised of up to date information regarding coil roofing nails to allow you to manage your business accordingly. The ongoing mandated government shut down of the galvanizing and plating lines in China are ongoing. While the original June shutdowns were locally mandated by regional government authorities, the August 12, 2017 shutdowns were federally mandated.
Click here for the recent article that explains this from Reuters News Agency.
Galvanizing and plating operations are very chemical intensive with Zinc and other rust-inhibiting and cleaning materials used in the process. During this recent shutdown plants must be recertified and licensed by the Chinese government to regain their operational permitting. This effects all galvanizing lines in this area regardless of who is supplying your nails.
Additionally the federal government has taken 60 million tons of steel production out of the market due to environmental concerns at the older steel plants. Authorities have reduced the number of emissions permits to these steel mills as well and they will be forced to make the decision to upgrade their technology and clean up their processes.
It is expected that galvanizing lines in Shandong Province will re-open in early September. This means that one month of production has been taken out of the market and orders will be delayed commensurately. While there are plants in other provinces that may not be effected, CMI’s coil nail capacity is all in this area and we believe is the majority of nail making capacity.
If galvanizing lines reopen as scheduled in early September it will take approximately one week for our plants to get galvanized nail inventory back and start collating and working through the backlog. We will continue to monitor this situation and keep you informed with additional updates.
While we are very sorry for this supply interruption we know it is critical we keep you informed and provide information so you can manage your supply needs accordingly.
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.