Domestic Paper Stock Use Improves

Recent figures show domestic paper stock use is improving on the domestic side.

The most recent report from the American Forest and Paper Association finds that the consumption of recovered fiber by domestic mills improved for April, from figures the same time last year. According to the AFPA, total U.S. use by paper and paperboard mills reached 2.907 million tons, compared to last April’s figure of 2.880 million tons.

While total consumption improved for the month, the consumption of recovered fiber by domestic mills still lags over the first four months of the year. For 2002, the consumption level stands at 14.492 million tons, a decline of 2.2 percent from last year’s four-month consumption total of 14.820 million tons.

Despite the decrease from figures last year, the numbers are much closer than they were earlier in the year when the difference between last year and this year was more than 25 percent.

Another promising note for the paper stock industry has been the steady decline in the inventory of recovered fiber at domestic mills. At the end of May the inventory level stands at 874,400 tons, a 4.6 percent decline from the previous month. Even more promising is the 25.8 percent drop in inventory levels from last May to this past May.

The decline in inventory levels follows an overall trend in the paper industry, with inventory levels of most raw materials and finished products posting double digit declines from figures the same time last year.

The ability of domestic mills to work off significant amounts of excess inventory over the past several quarters, as well as the shutdown of a host of machines and mills has allowed the U.S. paper and paperboard industry to curtail its inventory numbers.