AF&PA: U.S. Containerboard Production Declined 7%

The containerboard operating rates fell short of 90% at 89.1%. The linerboard operating rate dropped to below 90% for the fourth time this year.

SEATTLE (Scrap Monster): The American Forest & Paper Association (AF&PA) released its U.S. Boxboard Report for June 2019. According to the report, the total monthly U.S. boxboard production registered 3.7% decline during the month. The total boxboard operating rate was 92% for June this year.

The production of solid bleached boxboard and liner was down by 7.8% during the initial six-month period of the current year. Also, recycled boxboard production dropped lower by 3.3%. On the other hand, the unbleached kraft and gypsum production surged higher by 1.8% over the previous year in Jan-June ’19.

The U.S. containerboard production has declined by 6.6%, upon comparison with June 2018. The year-to-date production too witnessed a decline of 4.9%. The containerboard operating rates fell short of 90% at 89.1%. The linerboard operating rate dropped to below 90% for the fourth time this year. The year-to-date total operating rate has dropped by 6.2% upon comparison with the previous year. The containerboard production for export witnessed sharp decline by nearly 12% in June this year.

As per AF&PA estimates, the packaging paper shipments by the U.S. were down by 6.7% year-on-year in June. The operating rates increased from 85.2% in May to 86.2% in June. The packaging paper inventory levels were down by 3.6% from the prior month.

The U.S. shipments of coated mechanical paper registered year-on-year decline by 4% in June. The shipments of coated free sheet papers too were down by 12%, when compared with June 2018.

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