Mar 24, 2004. /Lesprom Network/. Newsprint demand remained basically flat in North America last month, but inventories at mills rose for the second straight month, according to a report by the Pulp and Paper Products Council. A slender increase in U.S. demand – 1.2% -- during February was offset by reduced requirement in the smaller Canadian market, where demand was down 11.6% year-over-year (a decline of 11,000 tonnes). At the same time, newsprint inventories in North America rose again, with Canadian mills accounting for 301,000 tonnes of the overall North American inventory of 358,000 tonnes. Inventories have now risen 18% and by 55,000 tonnes since December 2003, but still remain broadly in line with inventory levels in February 2003, which was at 354,000 tonnes. Operating rates in February were 87% in the U.S. and 93% in Canada, producing a North American total of 91% - just 1% lower than in the same month last year.