<B>Exports Up First Five Months</B>

Paper stock exports were up strongly the first five months of the year. The run in export orders was a key reason for the improved market for many paper stock grades during the first half of this year. The second half of this year, however, is starting off on an ominous note.

According to the U.S. Commerce Department, total exports of recovered fiber increased by 19.2 percent over the first five months of the year. The increase brings the annual rate, year to date, to 9.6 million tons.

For May, the most recently reported month, total paper stock exports stand at slightly more than 900,000 tons with a value of around $115 million. The figures for the month are up sharply from the previous month, which realized total exports of 770,000 tons.

Despite tremendous interest in the Chinese market, shipments of recovered fiber to Canada continued to be one of the biggest drivers for the U.S. paper stock industry. Total paper stock shipments from the United States to Canada stand at around 250,000 tons in May, bringing the annual rate, year to date to 2.8 million tons. Exports to Canada are up more than 34 percent from last year, according to the Commerce Department.