Hello Team,

Please find the October PPPC Flash Report attached in the MS Excel file below.  Pablo Conde's highlights include:

*North American mills produced 11.9% less newsprint than in October of last year, resulting in an
85% operating rate.  If we exclude the idled capacity in Steilacoom WA (130 000 tonnes; mill
closed in December 2000) and Kenora ON (85 000 tonnes; PM#8 shut down in June 2001), the
operating rate would be 86%.

*Total North American newsprint shipments fell 12.3% year-over-year in October, due principally
to a 10% contraction in North American demand. Moreover, North American deliveries to
offshore markets registered a marked decline, falling off almost 25% from the same month last
year. Shipments to all the major markets fell, however Latin America accounted for more than
50% of the decrease. At the end of October, North American mill inventories increased slightly,
by 8 000 tonnes month-over-month, but remained 1% below the historical average.

*In October, total newsprint consumption in the US was 9.3% lower than the same month last
year, and US dailies consumption was down 10.8%. It should be noted, however, that
October 2000 counted 5 Sundays (as opposed to 4 in October 2001) and was the fourth strongest
month ever for newsprint consumption by US dailies. Inventories held by US dailies fell for a
third consecutive month, down 50 000 tonnes month-over-month, and stood at 38 days of supply
at the end of October. Since the end of February 2001 US dailies' stocks have decreased by
213 000 tonnes, or -19%. The most recent figures indicate that ad linage decreased 8.7% in
September 2001, for a year-to-date decline of 4.6%.

*At the end of October, total North American inventories (all mills and users) decreased by
41 000 tonnes from the preceding month. As a result, total North American inventories stood at
1.718 million tonnes, or 5.3% below the historical average.

 

Ayesha