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nails - 6/16/2008 8:39:57 AM    woodbutcher   Posts: 79 Joined: 9/14/2005 Status: offline  Two weeks ago our nail vender came too me and stated that there was going to be another increase in the nail pricing.  This increase could or would be as much as 40% for certain brandes of nails. Naturaly the brand we use is at the 40% increase level. I understand that metal like wood is a comodity and that the valeu of it is rising. However at this time after the january increase this feels like my vender is trying to run a number on us. Is there anyone out there that has been told the same thing? Post #: 1

RE: nails - 6/16/2008 12:03:53 PM    mstigall   Posts: 2 Joined: 3/5/2008 Status: offline Our supplier has shared the same information with us and has said there may be another increase on the horizon. We have shared this information with our customers and passed through these increases. He also mentioned that with the recent earthquakes in China much of the steel production will be converted to infastructure repairs (Sounds like leverage for future price increase) Post #: 2

RE: nails - 6/16/2008 9:00:19 PM    Fast Freddie   Posts: 338 Joined: 5/10/2005 Status: offline all the more reason to support North American assembly and manufacturing, chinese wire can be drawn and collated at north american mills for a similar price as chinese made nails! FF _____________________________ Fast Freddie Fred Vrugteveen Niagara Pallet & Recyclers Ltd. Moving your Business, one Pallet at a time... www.niagarapallet.ca 905-384-SKID Ph. 905-384-0387 Fax Post #: 3

RE: nails - 6/20/2008 12:59:05 PM    hysch   Posts: 19 Joined: 8/19/2005 Status: offline We saw an increase this week around 6-7%. We had a 7% increase around early march. Steel prices have been somewhat flat since April from what I've seen. 40% seems awful steep. Might be time to look around. We are using Unicatch nails. Post #: 4

RE: nails - 6/26/2008 11:59:00 PM    Gulo   Posts: 55 Joined: 6/1/2005 Status: offline So Freddie you say it is ok to circumvent steel workers jobs by purchasing Chinese wire rod to produce nails in North America. At what level is it ok to not purchase North American made? What level of jobs is it OK to lose? Do you figure that steel workers are a bunch of over paid union thugs? Where does someone purchasing all North American to purchasing imports. By the way do you drive a Chevy or Ford? How much of your car is actually made in America? Or are you fine to purchase parts from overseas and manufacture in North America. If it is OK to use Imported Rod to manufacture nails in North America, why isn't OK to purchase foreign nails to make pallets? Especially if you can save your customer CN$0.15-0.20 per pallet or get a jump on your competitor. I really do not know what you are britching about, at least your gobernment did not slap on anti-dumping duties to protect inefficiencies in manufacturing and poor quality in nails and service. If you are not competitive you have three choices, change your purchasing habits, get more efficient or file chapter bye bye. So what are you going to do? Continue to use North American product or by the cheap Chinese nails at a 5-$10 per box savings? We are all hypocritical to a certain level, what's yours? Post #: 5

RE: nails - 6/27/2008 9:43:36 AM    Ed Brindley   Posts: 69 Joined: 5/18/2005 Status: online Costs of pallet manufacturing are going up on all fronts. Lumber, nails, and freight - all three elements of the equation that are outside of our own four walls. People who subscribe to and read the Pallet Profile Weekly have been kept informed about higher nail prices. While this doesn't make it any easier to accept, at least it helps keep readers informed. Within the next few weeks, the Profile plans to put together a white paper that explains the increases in these three elements in straightforward terms so our readers will have credible information from a source outside of their company to share with customers. We are also planning to develop a white paper specifically on the nail and steel issue. Any pallet manufacturer or recycler can keep up with these kinds of issues by subscribing to either the Pallet Profile Weekly or Recycle Record. It looks like inflation is growing daily as a concern. While we make no promises about tomorrow, did you known that these two reports are selling for the same price today they did when they were first developed? They are the only market reports that focus on the pallet industry, and they sell at prices that are lower than those for most specialty focused newsletters and price reports. The Profile has been around for over 31 years without a price increase so far. Today our reports are better than ever before which makes them a bigger growing bargain every day. Call Jeff McBee at 800/805-0263 for information. Hope all of you continue to enjoy the Pallet Enterprise which has been provided to you for no charge for over 26 years now. To set the record straight, you cannot save $.10 to $.20 per pallet by buying nails from China, not in today's market (even in Canada). In addition, are you certain that the domestic rod and wire markets can supply our domestic nail manufacturing needs? We are now in a global marketplace. It is increasingly difficult to get a consistent deal off shore that is better than domestic supplier arrangements. Keep in mind that having dependable nail supplier relationships is important. You cannot keep switching horses with each race, particularly when you are dealing half way around the world. It is increasingly difficult to navigate the difficult waters of today's markets. All of us hope that nail prices soon level off, or maybe even start down. Keep in mind, however, that they are a function of the world steel market, which has continued to go up every month this year. For the record, our sources suggest that both July and August are going to see higher rod and wire prices. It is difficult to look out much further because we do not receive information from the players in the steel market much further out than that. Call us at 804/550-0323 if you want to discuss today's pallet market and its key cost items. Join our readership to receive unbiased information that you can use at your discretion with your customers. Our plans call for developing white position papers as needed on key issues for our readers. Sincerely, Ed Brindley, Ph.D. publisher Post #: 6

RE: nails - 6/27/2008 7:46:21 PM    Gulo   Posts: 55 Joined: 6/1/2005 Status: offline Ed, You did set the record straight.  The Canadians are still able to purchase Chinese nails without a 21.24% duty.  You also did extremely well at answering a rhetorical question.  As long as I am in a p.i.s.s.y mood, was your response a trying to answer questions or put in a plug for the PE.  I realize that I am skating on thin ice since it is your board, but the board is to bounce ideas.  It is strictly forbidden to conduct business on the discussion board.  Hey, you made the rules. Gulo Post #: 7

RE: nails - 6/30/2008 3:08:56 PM    Ed Brindley   Posts: 69 Joined: 5/18/2005 Status: online Dear Gulo, You are correct. Canadians can still buy nails without a tariff on Chinese imports, but they are not insulated from the worldwide pressures on the steel market. Pallet nails are going up for everybody. True they have gone a little higher for some suppliers due to the tariff. This does not, however, detract from the overall accuracy of what I said. To set the record straight, this is our web site and none of the people posting or reading on this board pay the costs associated with our sites. Contrary to popular demand, the web is not free. I could add another person on our regular payroll for what it costs to support our many sites and their content. You asked about using our site for promotion. It is true that we have a policy against people posting just for commercial purposes. If you read by post, I believe your will understand that I was trying to provide information of value to our readers. To promote the Pallet Enterprise is not trying to sell something; on the contrary it is supporting a product that is free within the U.S. to our readers. The papers I mentioned will be available at no cost to subscribers to our market reports. You have to understand how quickly some people will try to use a resource that they do not support just because they believe they can take advantage of it. Many people are looking for something for nothing. I certainly do not believe your can accuse our staff of anything other than supporting our industry with all of our efforts. I was using the Pallet Board to communicate to readers what was available to them. I was not violating the intent of no commercialization on this site. Have a good day. Sincerely, Ed Brindley, publisher Pallet Enterprise Post #: 8

RE: nails - 6/30/2008 3:37:33 PM    woodbutcher   Posts: 79 Joined: 9/14/2005 Status: offline Thank you all for your responces. I posted this thread as a result of a supplier that I feel has attempted to take advantage of the entire situation. I still believe they have. I have come to this decision as a result of several pieces of information. 1) I have an associate who IS in the nial import bisness he has not seen increases the likes of 40% in the entire year. 2) I have not seen anyone on here start screaming about the price of nails going up. 3) the suposed brand that my vendor is blaming the increase on is there "house brand" so if the house brand is going to take a 40% increase and do little about it then I had to evaluate the corprate buyer for that orginazation. That is not a price increase im going to take lying down.  If they are then I surley need a new vender to be my partner in longterm productivity. I fear this other company is headed down a road of destruction. Post #: 9

RE: nails - 6/30/2008 9:38:15 PM    X me   Posts: 50 Status: offline Any one who has not been watching the steel market is in for a massive surprise.   Wire rod (base product for nails) is 2-1/2 times more expensive than it was in January of 2007.  As a result the nails manufactured from this wire are now about double the early 2007 price. Mittal and Davis Steel and Wire are quoting $0.72 - $0.73 per pound for July arrivals.  The 12x40 winged H beams that we used for foundation work jumped from $0.53 in May to $0.70 in late June.  We are being told that the 5/8 IR for concrete work is in the same boat.  If you think nail prices are ugly now, just wait.  They will get uglier than the people selling them. Post #: 10

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