Sep 01, 2004. /Lesprom Network/. In July, North American containerboard demand showed improvement, increasing 6.6% over the corresponding month last year, according to report by the Pulp and Paper Products Council. North American containerboard production increased by 207 000 tonnes in July or 7.5%, compared to the same period in 2003. During the month, North American mills operated at 97% of their capacity, up from 89% reached a year ago. Inventories held at North American mills and box plants totaled 2.4 million tonnes at the end of July, an increase of 172 000 tonnes over the previous month and a decline of 221 000 compared to the same month last year. In July, North American boxboard demand improved, growing 3.9%, while production was up 4.0% compared to the same month last year. Boxboard mills operated at 92% of their capacity, a seven-point increase over the 85% registered in July 2003. North American kraft paper demand showed a decline in July, down 2.0% compared to the same month in 2003. North American production of kraft paper was down nearly 1% for the month compared to 2003. Kraft paper producers shipped at 87% of their capacity in July, up from 85% reached in the same month last year. North American kraft paper inventories reached 86 000 tonnes at the end of July, 6 000 tonnes lower than last month. At current shipping rates, it is estimated that producers held 15 days of supply at month end.