<B>Domestic Paper Stock Use Declining</B>

The consumption of recovered fiber at domestic paper and paperboard mills is showing signs of sharp declines. According to the American Forest and Paper Association consumption over the first five months of the year stand at 15.097 million tons, a 3.7 percent decline from figures the same time last year. Further, the consumption of recovered fiber for May, the most recently reported month, dropped from 3.297 million tons last May to 2.987 million tons this May.

Adding to the overall slowing in paper stock markets, the inventory of recovered fiber at domestic mills is starting to creep up. After declining steadily over the past several months recent indications show the total inventory increasing. The inventory level at the end of May, 1.033 million tons, is a 1 percent increase from last May's figures, as well as a 4.4 percent improvement from May 1999.