Temporary Delays of Roofing Nail Production – Will Be Caused by Upgrading of Galvanizing Lines
FOR IMMEDIATE RELEASE:
Dear Valued Customer;
As the “Leading Importer of Coil Roofing Nails” in the US today we have certain responsibilities. Our customers need to be informed and up dated with accurate market information, and most importantly any possible supply interruptions.
GOVERNMENT MANDATED TECHNICAL UPGRADING OF GALVINIZING LINES TO CUT JULY CAPACITY OF ROOFING NAILS.
Since early July most Galvanizing lines that supply the EG coating for roofing nails have been required to immediately undergo a “technical upgrading” as part of enhanced pollution control requirements. This is not the same situation that occurred several years back when all galvanizing lines were closed for an extended period. This is short term shutdown while some government mandated pollution control enhancements are being implemented. It is estimated that the shutdown will reduce capacity by about 30% during July. Because of the size of our two primary partner plants, we use multiple platers/galvanizing lines to help us limit potential interruptions. Some smaller plants may use one galvanizing line so it could effect a higher percentage of their business.
You may wonder why you are not hearing about this from other nail suppliers, honestly they may not even be aware yet. We take this responsibility seriously and will continue to monitor this situation through our nightly reports from plant management and our on the ground China Manager of 20 years.
All indications and reports suggest these galvanizing lines will be re-certified to open again on or about July 25th. We will keep you updated.
UPDATE ON CONTINUED OCEAN FREIGHT INTERUPTIONS AND RECORD OCEAN FREIGHT LEVELS
Shipping container availability and rate levels continue to create a very challenging business environment. Supply chain interruptions and strong demand have current imports from China up 38% year to date. Port delays pale in comparison to the inland rail backups. This week the largest US rail line, Union Pacific, suspended shipments from the West Coast to Chicago in an attempt to clear out the back up at all of their Mid-West rail yards.
While CMI continues to be able to ship the majority of our coil roofing nails timely, ocean rates continue to escalate. Recent 40’ container rates have reached the $25,000 level, and were $6,600 earlier in 2021. 20’ container rates have exceeded $19,000 and were $5,800 earlier this year. The major ocean lines are expected to see record profits, exceeding $100 billion dollars in 2021, and year to date profits are 5 times their same period of 2020. Excess freight charges will continue as previously shared.
We fully expect this strong demand for ocean freight and rate levels to continue for the balance of 2021 and into early 2022, with Lunar New Year occurring earlier in 2022.
STRONG DEMAND AND LONGER LEAD TIMES CONTINUE FOR ALL NAIL PRODUCTS
Lead Times for new orders vary by product type:
Coil Roofing Nails – December/January, Plastic Cap Nails – February, Bulk Nails – November, Construction Nails – November/January, Tin Caps – on Allocation at this time, Dade County – Coil Roofing Nails – on Allocation at this time.
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.