According to the data monitoring of SunSirs: this week (11.11-11.15), the supply of wood pulp spot market is relatively stable, the overall transaction is more rigid, and there is a small downward trend near the weekend. On November 15, the average market price of softwood pulp in Shandong was 4,500 RMB/ ton, which was 0.28% lower than that at the beginning of the week. On November 15, the average market price of hardwood pulp in Shandong Province was 3B787.50 RMB/ ton, which was 0.33% lower than that at the beginning of the week.

According to the observation of market changes, the market trend of wood pulp spot market started to be stable at the beginning of this week, and the downstream paper mills were in general mood to take goods, mainly for just needed purchases, and there was no obvious sign of demand improvement, so the industry mostly held a cautious wait-and-see attitude. At present, the delivery situation of bulk orders in the downstream is weakened, which makes the inventory increase accumulatively, which leads to the pressure on the wood pulp price and a trend of small downward exploration. According to the published trade data, China imported 2.626 million tons of wood pulp in October, up 21.46% month on month. The significant increase in imports also continued to put pressure on the price of wood pulp. In addition, the demand peak season of the downstream paper mill will pass, and the pressure of high storage will be superimposed, which is negative in the short term.

On November 13 this week, a seminar on the situation of China's pulp market in 2019 and the first anniversary of the listing of pulp futures hosted by China Paper Association and Shanghai Futures Exchange was held in Xiamen, Fujian Province. Wang Fenghai, Secretary of the Party committee and general manager of the Institute, said that the Institute would gradually expand the delivery resources of pulp futures, do research in the internationalization path of pulp futures, and improve the international pricing capacity of pulp futures. In 2019, the correlation between the main contract and spot price of pulp futures reached 0.9, with high convergence of spot price and good function of price discovery. So the stimulus from the message side will also have an impact on spot prices.

In terms of futures, on November 15, the opening price and settlement reference price of pulp futures sp2001 of Shanghai Stock Exchange were 4,554 RMB/ ton and 4,524 RMB/ ton respectively. Yesterday, the settlement price was 4,562 RMB/ ton, with 221646 transactions and 244,718 positions.

According to the wood pulp analysts of SunSirs, due to the slowdown of the overall economic growth and the uncertainty of Sino-U.S. trade relations and other factors, the release speed of downstream demand is slow, coupled with the impact of high inventory pressure and the recent downward futures, it is expected that the spot price of short-term imported wood pulp is still weak and volatile.

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