SunSirs: Building Material, Spot Price of Wood Pulp down slightly, Expected Short-term Low Consolidation

According to the data monitoring of SunSirs: this week (12.9-12.13), the wood pulp spot market as a whole shows a weak consolidation trend, driven by the lower pulp futures price, the spot price drives the exploration. On December 13, the average market price of softwood pulp in Shandong was 4,387.50 RMB/ton, down 0.45% compared with that at the beginning of the week. On December 13, the average market price of hardwood pulp in Shandong was 3,715 RMB/ton, which was 0.34% lower than that at the beginning of the week.

According to the observation of market changes, due to the low enthusiasm for procurement in the downstream market, the volume of pulp market is relatively small, and the wood pulp price shows a narrow adjustment trend. At present, the port's pulp inventory has declined, but it is still at a historical high, so there is no obvious sign of relief of supply pressure. In addition, the peak season of downstream paper demand is coming to an end, and the paper enterprises mainly focus on rigid demand procurement, resulting in the decline of market replenishment power. In addition, due to the downward impact of pulp futures, the spot price of wood pulp also slightly declined, and some traders reduced the delivery price by 30-50 RMB/ton.

It is understood that in December, two lines of Cenibra pulp plant has maintenance plan, with a total of 12 days of maintenance. This will reduce the output and alleviate the domestic import and port inventory. However, with the end of the traditional peak season of cultural paper and the continuous downturn of the paper market for daily use, the market demand for wood pulp is weakening, and the short-term demand is difficult to increase significantly.

In terms of futures, on December 13, the opening price and the latest price of pulp futures SP2001 of Shanghai Stock Exchange were 4,446 RMB/ton and 4,472 RMB/ton respectively. Settlement price of the previous day was 4,442 RMB/ton, with 77,172 transactions and 127,792 positions.

According to the wood pulp analysts of SunSirs, the wood pulp market is still oversupply near the end of the year, and the prosperity of the downstream industry is slightly poor. In addition, the arrival of the Spring Festival holiday earlier this year, the Spring Festival downtime of some small and medium-sized paper mills may increase, resulting in the slowing down of wood pulp consumption. It is expected that the wood pulp market will be in a low consolidation trend in the short term.

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