SunSirs: Building Material, Wood Pulp Market Remained at Low Level and Dominated by On-demand Procurement on March 25

According to the monitoring of SunSirs, as of March 25, the market price of softwood pulp was 4,506 RMB/ ton, and that of hardwood pulp was 3,763.33 RMB/ ton. The market price is difficult to rise due to the on-demand Procurement.

Product: the spot market of domestic wood pulp is in a weak position, the port inventory is approaching a historical high, the downstream paper enterprises basically resume production in an all-round way, but they are mainly doing on-demand procurement, and the actual trading is weak. The quotation of mainstream softwood pulp in Shandong, Jiangsu and Zhejiang is 4,400-4,450 RMB/ ton.

Port stock: in January 2020, the end of month stock of European port wood pulp fell 7.1% month on month, and the total stock decreased to 1,652,300 tons from 1,778,600 tons at the end of December 2019. At the end of January 2020, except for the increase of stocks in France, Switzerland and Spain, the stocks of wood pulp in ports of other countries decreased compared with the end of December 2019, while compared with the same period last year, the stocks of wood pulp in all countries decreased year on year. In January 2020, the cumulative stock of European pulp decreased by 9.48% year on year. In January this year, the overall stock of European wood pulp was lower than the same period last year. Spot futures: the sp2005 contract closed at 4,486 RMB/ ton last trading day, up 44 RMB/ ton; the total position of wood pulp futures is 72,098 at present, down 5,169. Spot surface: wood pulp spot market of the previous day was light stable operation, some traders do not quote, and downstream paper enterprises buy with use.

Industry: the hardwood pulp commodity index on March 24 was 81.81, unchanged from the previous day, down 40.66% from 137.86 (2017-11-13), the highest point in the cycle, and up 1.50% from 80.60, the lowest point on December 25, 2019. (Note: cycle refers to 2012-11-30 to now)

The softwood pulp commodity index on March 24 was 92.75, which was the same as the previous day, 39.02% lower than the highest point 152.11 (2017-11-08), and 2.70% higher than the lowest point 90.31 on December 16, 2019. (Note: cycle refers to 2013-09-01 till now)

SunSirs’ Wood pulp analysts believe the wood pulp market in the short term will remain low-level operation.

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