Canadian Pulp Production Jumps

Canadian market pulp production continues to show improvement. The most recent figures from the Pulp and Paper Products Council shows Canadian market pulp production at 756,000 metric tons in February, a 4 percent increase from figures the same time last year. The totals for the month pushed the two-month production figure to 1.586 million metric tons, a 7 percent improvement from 1999's production total.

The operating rate at Canadian pulp mills stands at 100 percent of capacity for the month, compared to last February's rate of 101 percent of capacity. For the first two months the operating rate is 101 percent of capacity, compared to last year's operating rate of 98 percent of capacity.

Shipments of Canadian market pulp increased 7 percent in February to 791,000 metric tons. Shipments for the first two months posted an even sharper 11 percent increase, with this year's total at 1.595 million metric tons.

The driving force for the increase in shipments remains movement to Western Europe, which increased its intake of pulp by 14 percent for the month, and shipments outside Western Europe, Japan and North America, which also increased shipments by 14 percent.

The United States, the largest consumer of Canadian pulp, took in 265,000 metric tons for February, a 7 percent increase from last year.

Further promising indications are the steady decline in the inventory of Canadian pulp on hand. According to the Pulp and Paper Products Council, the inventory stocks for February dipped by 35,000 tons from the previous month, as well as down by 200,000 metric tons the same time last year.

Reflecting the dip, the days' of supplies on hand dropped from 23 days at the end of January to 20 days at the end of February.