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Nail Supply Update



Nail Supply Update
September 19, 2017

CMI, as leaders in the nail business since 1958, is committed to keeping our customers informed with accurate information on the steel and galvanizing plant closures in China that effect the production of roofing nails and associated products.


Please click here for an article and map of the primary areas affected by the mandated strict environmental regulatory hurdles. The largest circle on the map with Shandong Province in the center is where 80 % of the estimated coil roofing production is. The other 3 circled areas are manufacturing areas but not nail producing or steel production areas.

A combination of Chinese Federal, Regional and local EPA agencies mandated the galvanizing plant shutdowns, and were involved with the re-opening process. Lines are now operational and production is once again resumed. Now the catch up period is here and for CMI it will take us through October to work through the backlog if no additional Governmental delays occur.

The time surrounding October 18 is of critical importance as China has their annual Politburo Communist Party meetings in Beijing. They have mandated their “ Blue Skies” initiative, targeting polluting factories, to be shut down during this time frame. This could potentially cause additional delays during that timeframe that are unknown at point. We will be monitoring this routinely.

Here are important facts for your reference;

• Most plants lost 6 weeks of production time caused by the galvanizing shutdowns.
• We see most plants are fully booked through November.
• Costs since June are up 30% due to currency devaluation, steel, cardboard boxes, freight and additional galvanizing fees.
• Many plants are financially below water on current shipments and possibly wont ship all orders?

While it is not the new norm, you need to plan on 150 days at best for arrival of new containers. Some of our competitors may not tell you this but we would rather be transparent so you can manage your business; we owe you this as your partners. This current situation will bump up against the Chinese Lunar New Year Holiday when we will see plants take scheduled holiday shutdowns of 2 to 3 weeks, losing most of February production. We are now soliciting orders for delivery through March of 2018; and our supply is steady.

Outlook: we think there is a lot of panic buying currently, that’s not necessarily demand driven. As the pipeline gets full this could cause downward pressure on pricing in early 2018, and we want our customers to be aware of this.

Please feel free to 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 or contact your local CMI Sales Representative.

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