Dave,

As PPPC explains in the attached file the reason for the low levels of inventory was because the consumer inventories had reached such a low level (below normal) throughout the whole year that now consumers are rebuilding the stocks.

Monika

 -----Original Message-----
From: 	Allan, David  
Sent:	Thursday, November 15, 2001 10:06 AM
To:	Causholli, Monika
Subject:	RE: Norscan Statistics for October 2001

Any clue why sales were strong in Europe and North America? 

It might be worthwhile to talk to Allen Whitman and Michel Valois and see if they know.

Cheers,

Dave

 -----Original Message-----
From: 	Causholli, Monika  
Sent:	Thursday, November 15, 2001 8:24 AM
To:	Aguilera-Peon, Maria Teresa; Allan, David; Biggerstaff, Finley; Boudreaux, Jay; Braune, Carlos; Bruce, Michelle; Bruce-Jones, Tom; Bruch, Greg; Bryja, James; Cardoso, Leo; Carter, Karen E.; Conner, Andrew R.; Crane, Bob; Determeyer, Peggy; Dimitry, Dirk; Ferrell, Daniel; Foster, Michael; Ho, David; Hutchinson, Elizabeth; Juvane, Danilo; Kabel, Jeff; Kiehne, Sean; Monroe, James; Perez, Eugenio; Rickard, Craig; Robinson, Richard T.; Schmidt, Joern; Schube, Jonathan; Stapley, Cecil; Thakkar, Ami; Then, Leslie; Wales, Stacey
Subject:	Norscan Statistics for October 2001

Hello,

Please the attached PRELIMINARY CHEMICAL MARKET PULP REPORT from PPPC.

Highlights:

Inventories decreased by 48,000 metric tonnes, from the 1.549 million level, to reach the 1.501 million level. This is a positive development for pulp producers especially when compared to the hitorically flat change in October.

BUT in October the the lowering of inventories did not come as a result of producer discipline. In fact Norscan producers operated at 90% in October compared to the 79% in September.

What brought the reduction in inventories is the increase in shipments this month. Shipments were 1.866 million compared to the 1.771 million level in September. Demand was at a record high for the month of October due to strong pick-up sales in North America and Western Europe. Also contributing to the high demand were the shipments to Asia/Africa.
See the table below for the summary of statistics:
 
	Norscan Market Pulp Statistics - October 2001			
	Sep-01	Oct-01	Change	
		in 000s		
Inventories	                 1,549 	                    1,501 	                       (48)	
Op. Rates	                   0.79 	                      0.90 	                    (0.11)	
Production	                 1,584 	                    1,850 	                       266 	
Shipments	                 1,771 	                    1,899 	                       128 	





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