SunSirs: Building Material, Weak Trend of Domestic Wood Pulp Spot Market on February 18

According to the monitoring of SunSirs: as of February 28, the market price of softwood pulp was 4,500 RMB/ ton, and that of hardwood pulp was 3,750 RMB/ ton. The overall spot market of wood pulp was weak. The COVID-19 hit the short-term domestic economy, and the downstream resumption of work was delayed. The recovery of the demand side remains to be observed.

China's domestic port inventory rebounded: as of the end of January, the total inventory of the three places in China was about 1,675,000 tons, an increase of 99,000 tons on a month on month basis, or 6.3%, or 3% on a year-on-year basis. Near the Spring Festival period, the port inventory rebounded on a month on month basis, Qingdao port rebounded slightly on a month on month basis, and Changshu port inventory increased significantly on a month on month basis.

Futures: SP2005 contract closed at 4,512 RMB/ ton in the last trading day, up 24 RMB/ ton; the total position of pulp futures is 97,578 at present, down 700. Spot: the day before, pulp spot market was in a weak position. Last week, the price of the industry remained stable. The market was seriously affected by the logistics. Most of the industry only offered one-sided prices, mostly holding a wait-and-see attitude, and the actual transaction was light.

On February 17, the softwood pulp commodity index was 92.11, unchanged from the previous day, down 39.45% from 152.11 (2017-11-08), the highest point in the cycle, and up 1.99% from 90.31, the lowest point on December 16, 2019. (Note: cycle refers to 2013-09-01 till now)

On February 17, hardpulp commodity index was 81.41, unchanged from the previous day, down 40.95% from 137.86 (2017-11-13), the highest point in the cycle, and up 1.00% from 80.60, the lowest point on December 25, 2019. (Note: cycle refers to 2012-11-30 to now)

According to the wood pulp analyst of SunSirs, it is expected that the pulp price will fluctuate in the range of 4,200-4,600 RMB at the end of February, and it is suggested that the short and long strategy can be adopted at an appropriate low level.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com .