According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of softwood wood pulp and hardwood wood pulp have slightly declined this week. On July 20th, the average market price of softwood wood pulp in the Shandong region was 5,330 RMB/ton, a decrease of 1.22% compared to the average price of 5,396 RMB/ton on July 16th. On July 20th, the average market price of hardwood pulp in the Shandong region was 4,380 RMB/ton, an increase of 0.23% compared to the average price of 4,390 RMB/ton on July 16th.

By observing market changes, both softwood and hardwood pulp prices have shown a downward trend this week. In terms of supply, at present, the supply of wood pulp in the Spot market is stable, and the stock of Qingdao Port, a major domestic port for pulp, continues to show a trend of de stocking. With the recent agreement reached by the Canadian International Terminals and Warehouses Alliance to resume work, the import volume of pulp in the later stage remains high, with limited support for wood pulp prices.

In terms of demand, the overall transaction in the current market is weak, with a focus on wait-and-see. Multiple listed paper companies have experienced a semi annual performance loss, resulting in sustained sluggish terminal demand, and the paper industry is still in a state of destocking. With the weak downstream procurement atmosphere, the market is in a stalemate, and the demand for social gatherings is insufficient to boost, it is difficult for business owners to show optimism.

In terms of futures, on July 20th, the opening price of the SP2309 contract for pulp futures on the Shanghai Futures Exchange was 5,264 RMB/ton, with the latest price of 5,284 RMB/ton, a daily increase of 0.76%, with 431,600 transactions and 275,783 positions.

The prices of downstream white cardboard and gray background white cardboard have remained stable. On July 20th, the average market price of 230g-400g white cardboard was 4,640 RMB/ton, while on July 20th, the average market price of 250g gray background white cardboard was 4,165.67 RMB/ton. This week, the prices of white cardboard and gray background white board continued to hover at low levels, and the production of new production capacity for white cardboard continued to increase. Demand continued to fall during the off-season, and the payment cycle entered in the later part of the year. The focus of market transactions is under downward pressure. The enthusiasm for the construction of the whiteboard paper factory is not high, and it is in the traditional off-season. Downstream procurement is cautious, and the increase in new orders is limited. At present, the supply pressure in the white cardboard and whiteboard markets is high, and paper mills are under pressure to ship, making it difficult to alleviate the supply-demand contradiction.

SunSirs wood pulp analysts believe that the current wood pulp market prices have not changed much, with narrow fluctuations being the main trend, and market trading is mainly focused on purchasing on demand. Sellers continue to maintain a pro price attitude and expect short-term spot prices of wood pulp to remain volatile and organized.

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