The most recent figures show North American containerboard demand declining by 4.5 percent in August, compared to the same month last year. Linerboard demand was down 5.2 percent, while medium demand slipped 2.9 percent, according to the Pulp & Paper Council.
North American containerboard production decreased by 2.3 percent year-over-year in August, resulting in a 94 percent production-to-capacity ratio, three percent lower than the same month last year.
Inventories at North American mills and box plants totaled 2.6 million metric tons at the end of August, a 32,000 metric tons reduction over the previous month and a 104,000 metric tons increase compared to the same month last year. In August, North American boxboard demand expanded by 1.3 percent compared to the same month last year.
Canadian demand grew by 2.5 percent, while US demand grew by 1.2 percent, or 13,000 metric tons.
North American boxboard mills operated at 94 percent of their capacity, the same rate as last August. North American kraft paper demand fell by 6.1 percent compared to last August. Both bleached kraft paper demand and unbleached kraft paper demand were affected, declining by 12.7 percent and 4.2 percent respectively.
For August, North American kraft paper mills registered a 2 percent lower shipment-to-capacity ratios compared to last August, showing an average operating rate of 91 percent. North American kraft paper inventories remained at the same level from end of July to end of August, totaling 145,000 metric tons, but increased by 45,000 metric tons compared to the same month last year.
At current shipping rates, it is estimated that producers held 27 days of supply at month on hand.