Price trend

According to data monitoring by SunSirs, the spot prices of softwood pulp and hardwood pulp had been falling continuously this week. On March 17th, the average market price of softwood pulp in Shandong was 6,600 RMB/ton, a decrease of 2.8% compared to the average price of 6,790 RMB/ton on March 12th. On March 17th, the average market price of hardwood pulp in Shandong Province was 5,530 RMB/ton, a decrease of 2.81% compared to the average price of 5,690 RMB/ton on March 12th.

Analysis review

Through observing market changes, prices of softwood pulp and hardwood pulp continued to decline this week, and pulp futures prices also continued to decline. As of the end of this week, inflation in the United States overseas remained high, with external macro negative effects on overseas consumption, and the release of new hardwood pulp capacity accelerated, accelerating the accumulation of inventory in European ports.

However, the spot price of domestic wood pulp continued to weaken, and the market quotation was relatively chaotic. Factories were more wait-and-see, and small orders were traded. The demand for finished paper had not significantly improved, the willingness to purchase of downstream was not strong, the market mentality was not good, and the trading atmosphere was flat, which also formed a pressure on pulp prices.

In terms of futures, on March 17th, the opening price of the Shanghai Stock Exchange pulp futures contract SP2305 was 5,930 RMB/ton, while the latest price was 5,878 RMB/ton, with a daily decline of 1.71%. The transaction volume was 253,100 and the position was 176,579.

Market outlook

According to wood pulp analysts from SunSirs, under the impact of high inventory and weak demand in the wood pulp market, the price of wood pulp has accelerated downward, and it is expected that the spot price of wood pulp may still decline in the short term.

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