U.S. containerboard operating rates eased slightly m/m, but this likely reflected fiber supply issues rather than any decline in demand, according to Wilde. The total containerboard rate was 93.6%, compared with 94.3% in February. Total production was 1,999,000 tons, roughly flat with other recent months with 31 days (e.g. January = 1,993,000 tons, December = 1,957,000 tons, October = 1,998,000 tons). The linerboard rate was 92.6% (93.1% in February), and the corrugating medium rate was 96.0% (97.1% in February).
Wilde adds that containerboard trade flows moderated noticeably. Total containerboard exports rose just 12.2% y/y. This compares with y/y increases of 48.9% in February and 68.7% in January. Net exports of 210,000 tons compare with net exports of 252,000 tons in February, 302,000 tons in January, and 349,000 tons in December. The 139,000 ton decline in net exports since December is about 7% of March production. "Again, we think that this reflects tight conditions in the domestic market rather than any decline in export demand. Export prices continued to rise in March," Wilde says.
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