According to the monitoring of the commodity market analysis system of SunSirs, prices of softwood pulp and hardwood pulp were delayed last week, with mixed fluctuations. On December 15th, the average market price of softwood pulp in Shandong was 5,840 RMB/ton, an increase of 2.1% compared to the average price of 5,720 RMB/ton on December 10th. On December 15th, the average market price of broad-leaved wood pulp in Shandong was 5,040 RMB/ton, a decrease of 0.2% compared to the average price of 5,050 RMB/ton on December 10th.

By observing market changes, it can be seen that the price of softwood pulp stopped falling and rose last week, while the price of hardwood pulp slightly decreased. Pulp futures saw a significant increase at the beginning of the week, driving up spot wood pulp prices. In terms of supply, the external pulp quotation remained stable in December, and the pulp market supply returned to normal levels. International inventories decreased, and the import volume of pulp decreased by 6.5% month on month. The inventory of pulp samples in mainstream ports decreased by 69,000 tons, while the inventory of pulp in European ports decreased by 10.2% month on month. According to the data, the recent decline in pulp supply has eased market supply pressure.

In terms of demand, the demand for raw paper manufacturers has continued to be weak recently, and the enthusiasm of paper mills to start production has declined, so their willingness to purchase raw materials is not strong. The market for copperplate paper and double adhesive paper is generally operating weakly and steadily, with small orders mainly being sold on demand. However, some regions are supported by holiday orders, and paper companies have a strong willingness to raise prices, which provides some support for pulp prices.

In terms of futures, on December 15th, the opening price of the SP2405 pulp futures contract on the Shanghai Futures Exchange was 5,696 RMB/ton, the closing price was 5,672 RMB/ton, and the highest price was 5,750 RMB/ton, with a daily increase or decrease of 0. The trading volume was 392,000 lots, and the position was 159,663 lots.

SunSirs Wood Pulp Analysts believe that the current supply of pulp in the market has returned to normal, but the continued weak demand side has a certain negative impact on pulp prices. The fluctuation of the RMB exchange rate and crude oil prices, as well as the operating and funding situation of downstream paper companies, will also have an impact on the pulp market. It is expected that the spot price of wood pulp will continue to maintain a range consolidation in the short term.

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