SunSirs: China Wood Pulp Prices Return to Stable, or Short-term Shocks

According to SunSirs data, last week, the spot price of wood pulp returned to stable, traders' quotation basically did not change, only the hardwood pulp price slightly declined. On August 21, the average market price of softwood pulp in Shandong was 4,432.5 RMB/ ton, which remained stable compared with the average price of softwood pulp in Shandong at the beginning of the week (the average market price of softwood pulp on August 17 was 4,432.5 RMB/ ton). On August 21, the average price of hardwood pulp in Shandong was 3,582.5 RMB/ ton, which was reduced by 5 RMB/ ton or 0.14% compared with the market average price of hardwood pulp at the beginning of the week (the average market price of hardwood pulp was 3,587.5 RMB/ ton on August 17).

According to the observation of market changes, the spot price of wood pulp was basically in a flat state last week. Compared with the futures price of pulp, the spot price was weak to follow up. After the slight rise of wood pulp price in the previous week, the price of last week was lack of driving force, and traders were in a wait-and-see manner. In recent days, the paper price of many paper mills has risen sharply, which has strongly supported the demand and led to the decline of port inventory.

Under the influence of plastic ban order and waste paper policy, the output of white cardboard mill is stable, which is also conducive to the stable output of wood pulp. In addition, the price difference between softwood pulp and hardwood pulp has a certain impact on the cost of downstream paper industry. The change of sales strategy and the trend of pulp futures will also have a relative impact on the spot price of wood pulp. At present, the reference quotation range of softwood pulp is: Silver Star 4,400-4,500 RMB/ ton, and the price range of hardwood pulp is 3,530-3,650 RMB/ ton.

In terms of futures, on August 21, the opening price of SP2009 main contract of Shanghai Futures Exchange was 4,444 RMB/ ton, and yesterday's settlement price was 4,440 RMB/ ton, with 5,827 transactions and 16,140 positions. As the main contract of SP2009 is close to delivery, the main contract will be changed to SP2012 contract.

Wood pulp analysts of SunSirs believe that the current wood pulp price market is in a weak state of consolidation, and it is necessary to pay attention to the recovery of the demand side and the trend of the futures price. It is expected that the China wood pulp spot price will be mainly in the interval fluctuation in the short term.

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