According to the monitoring of the commodity market analysis system of SunSirs, the prices of softwood pulp and hardwood pulp still showed a mixed trend in December, but the overall prices slightly declined. On December 29th, the average market price of softwood pulp in Shandong was 5,850 RMB/ton, a decrease of 2.01% compared to the average price of 5,970 RMB/ton on December 1st. On December 29th, the average market price of broad-leaved wood pulp in Shandong was 5,040 RMB/ton, a decrease of 4.91% compared to the average price of 5,300 RMB/ton on December 1st.

By observing market changes, it can be seen that in early December, the spot prices of softwood pulp and hardwood pulp first decreased and then increased, and pulp futures prices also fluctuated. In terms of supply, the external quotation for pulp in December remained stable, with limited support for the domestic market. The supply side of pulp has returned to normal levels, and the high inventory levels of major international pulp producing countries and Europe have fallen, indicating that the supply and demand structure overseas is gradually improving. However, the import volume of domestic pulp is still high, causing supply pressure in the domestic market. But with the decrease in international inventory and domestic mainstream port sample inventory, the market supply pressure has been alleviated, and the price of wood pulp has stabilized and gradually increased.

In terms of demand, downstream paper mills have a strong willingness to raise prices and continue to issue price increase letters. However, with the weakening of finished paper production and sales, market shipping pressure has increased, and the enthusiasm of paper mills to start production has declined, resulting in a weak willingness to purchase raw materials and a slowdown in the speed of port pulp shipments. Near the middle of the month, some regions are supported by holiday orders, and paper companies have a strong willingness to raise prices, which provides some support for pulp prices and leads to an increase in prices.

In late December, the price of wood pulp remained stable with minor fluctuations, with prices mainly fluctuating within a certain range. In terms of supply, the global shipping market has been volatile recently, so if transportation problems continue, they may affect the import volume of domestic wood pulp in the later stage. The current inventory of pulp at major ports continues to decline, with a decrease in supply, which supports the price of wood pulp. In terms of demand, the current market lacks enthusiasm for trading, with downstream paper companies experiencing a decrease in operating rates and a weak willingness to purchase raw materials. The demand in the terminal market is also slightly weak, and some traders have shown a phenomenon of giving up profits to reduce inventory, which has limited support for the price of wood pulp.

In terms of futures, on December 29th, the opening price of the main contract of SP2405 pulp futures on the Shanghai Futures Exchange was 5,766 RMB/ton, the closing price was 5640 RMB/ton, and the highest price was 5,778 RMB/ton, with a daily decrease of 2.59%. The transaction volume was 473,400, and the position was 172,495.

SunSirs Wood Pulp Analysts believe that the current stock market price of wood pulp has a relatively smooth rise and fall, with little change in market supply and demand. Although terminal demand has performed poorly, the current Red Sea embargo may increase pulp transportation costs, providing some support for pulp prices. It is expected that the short-term stock price of wood pulp may maintain a wide range of fluctuations and consolidation.

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