<B>Corrugated Shipments Sliding</B>

Reflecting the downward move for the corrugated industry, the most recent figures from the Fibre Box Association shows total shipments of finished corrugated dropped by 4 percent in July to 32.667 billion square feet. The decline was realized through each region of the country, with the Northeast posting the sharpest drop (6.3 percent). Other regions, and their percent declines, are the following: Southeast, down 2.2 percent; East Central, down 4.3 percent; North Central, down 3 percent; South Central, down 6.2 percent; and West, down 1.8 percent.

The decline for the month pushed the seven-month shipment total to 234.719 billion square feet, essentially unchanged from figures the same time last year.

While unchanged between the two years, the Northeast and South Central both posted shipment declines between the two years -- the Northeast dropping 2.8 percent; the South Central, off 1.9 percent.

The problems in the paperboard industry also are seen in the slowing consumption levels at domestic mills. For July a total of 2.539 million tons of containerboard were consumed, a 3.9 percent drop from the same time last year.

The figures for the month brought the seven-month consumption figure to 17.979 million tons, essentially unchanged from figures the same time last year. The drop continues a downward trend in the paperboard industry, with shipments declining over the past several months.

The slide in shipments has been one of the biggest causes of alarm for many in the paperboard business. With slower orders for boxes, the inventory of finished products has backed up at many plants, and has been one of the biggest reasons for the sharp production declines that have been taken throughout the country.

Inventory levels at corrugator plants at the end of July stand at slightly more than 2.7 million tons, a 1.9 percent increase from figures the previous month. Despite the increase, the weeks of supply on hand dropped between the two months by close to 9 percent to 4.1 weeks.

The number of shipping days also decreased between last year and this year. Through the end of July shipping days stand at 19, compared to last year's figure of 21 days.