SunSirs: The Price of China Wood Pulp Rose gradually in August, or Fluctuates at a high level in Short-term

According to SunSirs: wood pulp prices rose steadily in August, near the end of the month, wood pulp spot prices appeared a wave of small rise. On August 27, the average price of softwood pulp in Shandong was 4,475 RMB/ ton, which was increased by 82.5 RMB/ ton or 1.88% compared with the average price of 4,392.5 RMB/ ton at the beginning of August in Shandong. On August 27, the average price of hardwood pulp in Shandong was 3,625 RMB/ ton, which was increased by 47.5 RMB/ ton or 1.33% compared with the average price of 3,577.5 RMB/ ton at the beginning of August.

From the observation of market changes, the price of wood pulp has been stable in the first ten days of August, until the middle of the month, the price rise of wood pulp in spot is mainly driven by the recent rise of pulp futures. In addition, the increase of pulp external quotation makes the domestic spot price rise. In late August, the spot price of wood pulp returned to stable operation. Compared with the futures price of pulp, the spot price was weak to follow up, and traders were waiting to see the implementation of price increase.

The current reference quotation range of softwood pulp: Silver Star 4,400-4,560 RMB/ ton, broad-leaved wood pulp price range is 3,550-3,720 RMB/ ton. In terms of futures, on August 27, the opening price of SP2009 contract of Shanghai Futures Exchange was 4,588 RMB/ ton, and settlement price of the previous day was 4,536 RMB/ ton, with 3,210 transactions and 8,195 positions. The opening price of SP2012 contract was 4,706 RMB/ ton, and settlement price of the previous day was 4,666 RMB/ ton, with 234,721 transactions and 191,534 positions.

Wood pulp analysts of SunSirs believe that the current situation of wood pulp import is stable, the market mentality has improved in the face of the epidemic situation, and the shipment volume in Brazil and Chile is stable, so the port inventory is still at a high level, and the pressure on supply and demand is still relatively large. It is expected that the short-term China wood pulp price will be in a high shock finishing.

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