SunSirs: The Price of Wood Pulp Continued to Rise, and May Fluctuate at a High Level in the Short Term

Price trend

According to the data monitoring of SunSirs, the spot prices of softwood pulp and hardwood pulp both rose this week. On August 4, the average market price of softwood pulp in Shandong was 7,280 RMB/ton, an increase of 1.82% compared with the average price at the beginning of the week (the average market price of softwood pulp was 7,150 RMB/ton on July 31). On August 4, the average market price of hardwood pulp in Shandong was 6,726 RMB/ton, an increase of 0.99% compared with the average price at the beginning of the week (the average market price of hardwood pulp was 6,660 RMB/ton on July 31).

Analysis review

From the observation of market changes, the price of wood pulp still showed an upward trend this week, and the price of pulp futures was mixed. As of the 4th, there was no major change in the supply and demand of pulp, the spot supply was still tight, the external quotation remained firm, and the domestic wood pulp spot quotation increased. In the downstream market, transactions were limited, and under the pressure of profit, paper companies were less motivated to stock up, and they mostly maintained the state of just needing to make up.

In terms of futures, on August 4, the opening price of the Shanghai Futures Exchange's pulp futures sp2209 contract was 7,194 RMB/ton, the latest price was 7,072 RMB/ton, 230,600 lots were traded, and 120,054 lots were held. The opening price of sp2210 contract was 7,008 RMB/ton, the latest price was 6,874 RMB/ton, the turnover was 52,200 lots, and the position was 50,901 lots.

Market outlook

The wood pulp analyst of SunSirs believes that the current pulp futures price has fallen, and the game between supply and demand in the pulp market continues. However, the supply in the spot market is still tight recently, which supports the spot price of wood pulp to a certain extent. It is expected that the spot price of wood pulp may remain fluctuate at high levels in the short term.