Price trend
According to the data monitoring of SunSirs, the spot prices of softwood pulp and hardwood pulp were still down this week. The average market price of softwood pulp in Shandong was 6,910 RMB/ton on March 3, down 1.43% from the average price of 7,010 RMB/ton on February 26. The average market price of hardwood pulp in Shandong was 5,800 RMB/ton on March 3, down 2.19% from the average price of 5,930 RMB/ton on February 26.
Analysis review
From the observation of market changes, the prices of softwood pulp and hardwood pulp continued to decline this week. Due to the economic downturn in overseas markets, pulp was in a state of oversupply, leading to the majority of pulp flowing to the domestic market, and the domestic port inventory continued to accumulate. However, the external price of wood pulp remained high, and the international supply side news supported the decline of pulp price.
In terms of demand, the current domestic economic recovery is still slow, and the purchasing sentiment of downstream base paper manufacturers is pessimistic. From the perspective of market performance at the price side, both the import cost and the focus of domestic futures and spot prices are in a downward trend in the short term.
In terms of futures, on March 3, the opening price of the Shanghai Stock Exchange pulp futures sp2305 contract was 6,438 RMB/ton, and the latest price was 6,370 RMB/ton, with a daily decline of 1.7%, with 168,300 transactions and 165,492 positions.
Market outlook
As of March 3, the wood pulp analysts of SunSirs believed that the domestic wood pulp market continued to played a game between supply and demand. With the support of the low spot price, the port inventory was slightly reduced. In addition, the exchange rate fluctuated significantly, and the depreciation performance, the import quotation cost was relatively strong. It is expected that the spot price of wood pulp will continue to be weak in the short term.
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