<B>North American Newsprint Production a Mixed Bag</B>

North American newsprint production continues to strengthen. According to the Pulp and Paper Products Council production for April stands at 1.347 million metric ton, a 2.4 percent increase from figures the same time last year.

Reflecting the increase, the operating rate at North American newsprint mills stands at 97 percent of capacity, compared to last April's figure of 94 percent of capacity.

The production for the month brings the four-month total to 5.350 million metric tons; a 1.1- percent increase from figures the same time last year. The operating rate also increased, from last year's average of 96 percent to this year's average of 97 percent.

While total newsprint production increased, the increase was realized by U.S. newsprint mills, which saw production increase by 11.1 percent for April to 571,000 metric tons, and by 5.7 percent for the first four months to 2.257 million metric tons.

Canadian newsprint production declined by 3.2 percent for the month to 777,000 metric tons, while the four-month production total stands at 3.093 million metric tons, a 1.9- percent drop.

The operating rates of Canadian and U.S. mills also diverged, with Canadian mills at an average of 95 percent of capacity for the first four months, while U.S. mills operated at an average of 99 percent of capacity.

The shipment of finished newsprint increased for April, although the increase was only slight. For the month shipments moved up 0.1 percent, while shipments increased by 5.2 percent for the first four months.

Once again shipments from U.S. newsprint mills were the driver for the market. For April shipments increased by 7.6 percent to 566,000 metric tons, while shipments for the first four month increased an even sharper 7.9 percent to 2.251 million metric tons.

Shipments from Canadian newsprint mills posted a decline in shipments for the month. According to the PPPC, shipments for April dropped by 5 percent for the month to 748,000 metric tons, while shipments over the first four months grew by 3.3 percent.