<B>Canadian Pulp Production Continues Strengthening</B>

Canadian market pulp production increased 3 percent for March from figures the same time last year. According to recent figures from the Pulp and Paper Products Council, Canadian market pulp production reached 796,000 metric tons in March, a 3 percent increase from figures the same time last year. The increase for the month pushed the three-month production total to 2.380 million metric tons, a 5 percent increase from last year's three-month figure of 2.262 million metric tons.

The operating rate at Canadian pulp mills also moved up between the two years, with this March's figure at 98 percent of capacity, while the operating rate for the first three months stands at 100 percent of capacity.

The Canadian pulp industry is benefiting from the sharply higher prices for market pulp, as well as many finished products in the forest products industry. Prices have continued to climb over the past several quarters. After resting in the doldrums through a good portion of the second half of the 1990's, pulp prices have been moving up almost on a monthly basis.

One of the biggest drivers for the sharply improved market for pulp is the recovery in many Asian economies.

Along with better production figures, the shipment of finished products continues to be strong. March shipments increased 2 percent to 825,000 metric tons, pushing the three-month total to 2.422 million metric tons, an 8 percent increase from 1999.

The biggest drivers for the improvement has been imports to the United States. For March shipments of Canadian pulp to the U.S. increased 12 percent to 279,000 metric tons, while for the first three months the shipments increased by 10 percent to 824,000 metric tons.

Shipments to Japan increased by 6 percent to 107,000 metric tons, while for the first three months the figure was up 5 percent to 287,000 metric tons.