SunSirs: China Wood Pulp Price is Weak and Volatile, or May Continue to be under Pressure in the Short Term

According to SunSirs, last week, the spot price of wood pulp was still in the state of rise and fall. On May 14, the average price of softwood pulp in Shandong was 7,212.5 RMB/ ton, which was 50 RMB/ ton lower than that in early week (7,262.5 RMB/ ton on May 10). On May 14, the average market price of hardwood pulp in Shandong was 5,212.5 RMB/ ton, which was 12.5 RMB/ ton higher than that in early week (5,200 RMB/ ton on May 10), an increase of 0.24%.

By observing changes in the market, early last week, with the dollar plummeted, commodity prices soared again. The highest price of 06 contract of pulp futures was 7,500 RMB/ ton, which made the spot price of softwood pulp driven upward, mostly small orders. And hard wood pulp also stabilized and rebounded, slightly higher than the previous price. But then the rise of pulp futures prices fell, and the softwood pulp spot market also fell, and hard wood pulp market has little change.

On May 13, 05 contract fell 3.54% to 7256, basically flat with the spot price. With the 05 contract approaching delivery, the market contracted volume and reduced positions, and the downward trend of pulp futures price expanded until May 14. The 06 contract once fell to 7,000 RMB/ ton. The spot market transactions light, the lower reaches of the paper factory started insufficient, just purchased by need.

In terms of futures, on May 14, the opening price of SP2106 contract of Shanghai Stock Exchange was 7,222 RMB/ ton, and settlement price of the previous day was 7250 RMB/ ton, with 265,638 transactions and 64,785 positions. SP2107 contract opening price was 7,122 RMB/ ton, the settlement price of the previous day was 7,132 RMB/ ton, 160,032 transactions, 108,743 positions.

SunSirs wood pulp analysts believe that the delivery of pulp futures contract 05 is imminent, the current futures prices continue to make up for the fall. The atmosphere of wood pulp spot market is low, the transaction situation is flat, and the willingness of downstream replenishment is not strong. It is expected that the short-term wood pulp market is dominant by needs in China, and the price may continue to be under pressure.

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