CMI Nail Update
FOR IMMEDIATE RELEASE:
CMI Nail Update
Dear Valued Customer;
Abington, PA (05/18/2022) – As America’s largest supplier of roofing nails, it is our obligation and commitment to keep our customers informed of what’s happening in the marketplace.
Replacement costs on “new” containers has dropped measurably since the first of the year. The ‘Big 3’ variables all changed during this time period;
OCEAN FREIGHT – Since January, ocean freight has dropped 30% to 50%; Nationally, this is $6.00 to $8.00 cost taken out of a box.
STEEL COSTS – Globally steel costs have steadily increased tied to the Russian/Ukraine war. Conversely in China steel/wire rod is down around 7%. The demand in China has all but dried up as their economy is struggling and construction has come to a halt. If the cost of a box of nails has come down $1.00, you have to layer in the tariff, and all of the sudden you have $1.25 in savings.
CURRENCY CONVERSION – Since the Chinese New Year the dollar has gained 6% against the RMB.
A combination of those ‘Big Three’ has driven coil prices down to their lowest point in 2 or 3 years. Overall, that has reduced landed costs of a box of 1-1/4” coil nails $10.00 on average nationally. Many distributors are watching their inventory carefully and may run out of product. Only CMI can Hot Rush orders out in 2 to 3 weeks from our CMI controlled production and assure prompt shipment. During 2022, 100% of our coil orders have shipped in the month committed.
Many importers, that have no investment in their supply chain or have no staff on the ground to manage the business, can easily quote low numbers as they have done in the past. The same dynamics are in play, where if their numbers don’t work out, they will not ship those orders and once again distributors will be left holding the bag.
We think some of the smaller plants may actually not be able to handle a down-turn in business and will not make it. Subsequently their orders will not be filled. Additionally, due to margin squeeze they will start taking cost out and we are seeing lots of competitive product that is out of ASTM specification. Thinner shanks and shorter length which may not be visible to the average eye. This does not meet the Customs and Border Protection specification requirements and we are evaluating how to handle this going forward.
CMI is the largest supplier of roofing nails in the market today. NOBODY does a better job than CMI providing quality and timely delivery for problem-free roofing nails nationally. We want to be your supplier. Please let us know how we can help support your business.
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.