Early October Roofing Nail Tariff Update
FOR IMMEDIATE RELEASE:
Roofing Nail Tariff Update
October 05, 2018
Dear Valued Customer;
In our continuing effort to keep our customers informed we would like to summarize the current impact of the Section 301 Tariff that was implemented in the first stage for material arriving in the U.S. as of September 24, 2018, with the second phase announced for January 1, 2019.
Any material entering the U.S. as of September 24th now has tariff applied as part of the import process.
The average cost impact on roofing nails is as follows:
•Coil Roofing Nails – $1.50 per box ($3.75 per box on January 1, 2019)
•Bulk Roofing Nails (50 pound) – $2.20 per box ($5.60 per box on January 1, 2019)
•Plastic Cap Buckets (3m count) $.80 per bucket ($2.00 per box on January 1, 2019)
We have seen some suppliers charging our customers 10% of the invoice value; that is not accurate, it is 10% of the net value so freight needs to be adjusted out in the calculation.
Supporting business with non-tariff nails… CMI is one of the largest importers of roofing and construction nails into the United States for the past 60 years. We are the only importer that controls its own roofing production facility in China. We also deal with nail and fastener plants around the world. As part of our supply chain and global sourcing we do have available to offer you ‘Non-Tariff’ affected roofing nails in coil and bulk from other origins that have no tariff implications. They are a little higher cost than the Chinese material arriving now at the 10% level, but offer a hedge and will be more competitive than the material arriving from China after January 1, 2019 when the 25% tariff kicks in completely. It offers a good hedge and allows you to know your costs with no unsettled risks.
Looking forward… China still remains having the largest capacity to produce these products, and there is just not enough capacity in other countries to supply the U.S. market. At this time, it does not appear that anyone is looking to make a major investment to produce roofing nails outside of China due to a very low margin and the simple business it is. The general consensus is the tariff issue will resolve itself politically over a reasonable amount of time. It is important to remember this is not a tariff on nails, it is a tariff on the import of Chinese nails only.
We will provide additional tariff and market information as we receive it to allow you to plan for your business needs.
Please let us know if you have any questions.
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.