U.S. Containerboard Production Recorded Notable Decline

SEATTLE (Scrap Monster): The American Forest & Paper Association (AF&PA) reported 7.2% year-on-year decline in U.S. packaging paper exports during the month of May this year. The shipments were down by 2.4% during the initial five months of 2019. The operating rate reported sharp decline from 88.4% in April to 85.2% in May. Inventory levels too registered a decline by 2.3% over the prior month.

According to AF&PA, the U.S. containerboard production dropped significantly by nearly 6% over May 2018. The year-to-date production stood lower by 4.5%. The containerboard operating rate rose slightly from 91.5% in April to 91.9% in May this year. The May ’19 operating rate was still lower by 6.7% than the same month a year before. The production for export was down by nearly 18% during the month.

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The report also notes that U.S. monthly boxboard production declined 4.6% when compared to May 2018. The boxboard operating rate was 91.1% during the month. Recycled boxboard production rose marginally by 0.2% during the initial five-month period of the year.

Meantime, the total printing-writing paper shipments were down by 11% year-on-year in May 2019. The U.S. shipments of uncoated free sheet (UFS) paper witnessed 13% decline from May 2018. The inventory level of UFS papers has increased marginally by 2%. The shipments of coated mechanical (CM) paper registered 4% year-on-year decline, whereas the inventory levels at the end of the month were up by 3% from April this year.