SunSirs: The Price of Wood Pulp is Subject to Shock Adjustment and may Remain Volatile in the Short Term

According to the data monitoring of SunSirs, the spot price of softwood pulp increased slightly this week, while the price of hardwood pulp decreased conversely. On September 9, the average market price of softwood pulp in Shandong was 6,300 RMB/ ton, an increase of 50 RMB/ ton, an increase of 0.8%, compared with the average market price of softwood pulp in Shandong at the beginning of the week (the average market price of softwood pulp on September 5 was 6,250 RMB/ ton). On September 9, the average market price of hardwood pulp in Shandong was 4,662.5 RMB/ ton, down 12.5 RMB/ ton or 0.27% compared with the average market price of hardwood pulp in Shandong at the beginning of the week (the average market price of hardwood pulp on September 5 was 4,675 RMB/ ton).

By observing the market changes, the price of softwood pulp at the beginning of the week was driven by the rising trend of pulp futures, and the quotation was increased. The price of pulp market has been boosted. First, changes have taken place at the macro level, which has led to the rise of pulp price. Recently, the US dollar has continued to fall, and the bulk markets have been boosted. In addition, the price of waste paper has been rising, which has led to the strengthening of cost support; Second, the downstream demand has improved, the double festival is approaching, and the demand in the peak season is still expected.

Subsequently, the pulp futures price was in a shock consolidation state, and the spot price of wood pulp rose slightly following the shock. However, the terminal demand has not changed much near the weekend. The operating rate of the paper mill is flat, which affects the effective volume of the pulp market and may suppress the future improvement of pulp price. The price of hardwood pulp has fluctuated slightly due to the weak market demand recently.

In terms of futures, as of 11:00 a.m. on September 9, the opening price of pulp futures SP2110 contract of the previous stock exchange was 6,194 RMB/ ton, which was settled yesterday at 6,186 RMB/ ton, with 89,959 transactions and 84,901 positions. The opening price of SP2111 contract was 5,992 RMB/ ton, the settlement was 6,004 RMB/ ton on the previous day, 34,191 transactions and 99,125 positions.

SuSirs wood pulp analysts believe that although there are a few price increase letters recently, they can not drive the rise of pulp price. The downstream market is rational, the demand support is weak, and the market wait-and-see mood is strong. It is expected that the short-term wood pulp price may remain volatile in China.

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