<B>North American Newsprint Production Rises</B>

The production of newsprint in North America continues to increase. For May, the most recently reported month, production stands at 1.294 million metric tons, a 1.9 percent increase from figures the same time last year. The figures pushed the five-month total to 6.645 million metric tons, a 1.3 percent increase from last year.

The operating rate at North American newsprint mills increased for both the month and first five months. According to the Pulp and Paper Council, the operating rate for May stands at 93 percent of capacity, compared to last May's figure of 90 percent of capacity. For the first five months, the operating rate stands at 96 percent of capacity, compared to last year's five-month average of 95 percent of capacity.

Canadian newsprint production for May jumped 3.9 percent to 768,000 metric tons, while U.S. newsprint production declined by 0.9 percent to 527,000 metric tons for the same period of time.

For the first five months, however, Canadian newsprint production dipped 0.8 percent to 3.860 million metric tons, while U.S. newsprint production increased 4.4 percent to 2.785 million metric tons.

Shipments also increased for the month and year to date. May's newsprint shipments reached 1.281 million metric tons, a 0.4 percent increase from last year. For the first five months shipments stand at 6.634 million metric tons, a 4.2 percent improvement from the same time last year.