MONTREAL, QC — North American newsprint mills operated at 88% of their capacity in June.
MONTREAL, QC — North American newsprint mills operated at 88% of their capacity in June.
Mills have used 90% of their capacity so far this year, compared to 87% for the same period last year.
Newsprint production was up by 1.6% year-to-date and total shipments increased by 1%. Deliveries to the domestic market increased 0.8% and sales to overseas grew 1.8% year-to-date.
By the end of June, North American mill stocks had decreased by 51,000 tonnes month-over-month.
Containerboard production declines
In June, North American containerboard production declined by 144,000 tonnes, or 5% compared to last year.
During this period, North American mills operated at 91% of their capacity compared to 95% a year ago. North American demand for containerboard dropped 4.3% over the corresponding month last year.
Inventories held at North American mills and box plants totaled 2.7 million tonnes at the end of June — a reduction of 60,000 tonnes over the previous month.
Boxboard production declined by 2.1% while demand weakened slightly, down almost 1% compared to the same month last year. Boxboard mills operated at 90% of their capacity compared to 89% in June 2002.
For the sixth consecutive month, North American production of kraft paper was lower than 2002 levels, down 17.5% for the month and 14.4% after six months. The decline in production is partly due to the strike at Eurocan’s Kitimat pulp mill in May.
Kraft producers operated at 83% of their capacity, down from 88% in the same month last year.
North American kraft shipments were down just under 8% year-over-year in June.
The only grade to show growth in this period was “bags and sacks”, up nearly 12%.
Kraft paper demand continued to decline this month, down 5.2% compared to 2002. Inventories decreased by 16,000 tonnes in June compared to May.
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