SAN FRANCISCO, Aug 27, 2001 (paperloop.com) - Worldwide chemical paper-grade market pulp producer inventories declined 34,000 in July from the prior month, according to preliminary data from the Pulp and Paper Products Council in Montreal. The reduction is a 1 percent drop from June levels, and marked the fifth month in a row that world inventories have dropped. 
World producer stocks closed July at 3.494 million tonnes, representing 38 days of supply, one day fewer than June results. Producer inventory levels are 54.7 percent higher than year-ago results, significantly better than the prior month's year-over-year 74.8 percent rise. In July of last year, world producers held 24 days of supply. 
July production of 2.747 million tonnes rose vs. last month but declined 12.1 percent compared to the same period last year when producers churned out 3.124 million tonnes. Global shipments dipped only slightly from the prior month's year-to-date high. World shipments totaled 2.791 million tonnes in July, down 3.1 percent from year-ago results of 2.883 tonnes. 
Producers operated at 88 percent of capacity in July. The operating rate mirrored June results but was down substantially vs. the 103 percent operating rate of the same time last year. The shipment-to-capacity ratio, considered an indicator of producer discipline, dropped 5 points from the prior month to 88 percent, PPPC reported. 
World inventory figures include totals from North America, Nordic countries, Argentina, Austria, Belgium, Brazil, Chile, France, Japan, Morocco, New Zealand, Norway, Portugal, South Africa, South Korea, Spain, and Swaziland. Countries that do not report inventories include Russia, Indonesia, Taiwan, and Thailand.