According to the monitoring of the commodity market analysis system of SunSirs, both softwood pulp and hardwood pulp continued to decline last week. On June 20th, the average market price of softwood pulp in Shandong Province was 6,083.33 RMB/ton, a decrease of 1.62% compared to the average price on June 15th. On June 20th, the average market price of hardwood pulp in Shandong Province was 4,116.67 RMB/ton, a decrease of 0.16% compared to the average price on June 15th.

Supply side: Last week, domestic port inventory showed a narrow range of accumulated inventory, with port inventory at a high level for the year. As of June 19, 2025, the sample inventory of mainstream Chinese pulp ports was 2.208 million tons, an increase of 1.1% compared to the previous period's accumulated inventory of 23,000 tons. During this cycle, the inventory of pulp at the mainstream domestic port of Qingdao Port continued to accumulate slightly, and the daily average shipping speed in the port did not change much, maintaining 15,000 tons/day; The inventory at Changshu Port also showed a narrow range of accumulated inventory, with shipments approaching 90,000 tons within the week; The overall fluctuation of inventory levels in other ports is not significant, maintaining normal fluctuations in inventory levels.

On the demand side: Currently, the price increase in the raw paper market is weak in the middle and late stages, and the expected improvement in the industry's gross profit margin is weak. Enterprises still face significant pressure to reduce raw paper inventory by offering discounts, which is dragging down the trend of pulp prices upwards. However, due to weak downstream demand and the lack of substantial progress in Sino US negotiations, pulp prices have not been able to continue to rise. Although the US China economic and trade negotiations have boosted market sentiment in the short term, the market is still dominated by fundamental factors due to weak downstream demand and overcapacity issues, leading to a further decline in pulp prices.

In terms of futures: This week, pulp futures prices first rose and then fell. As of June 20th, the opening price of the main contract sp2509 pulp futures on the Shanghai Futures Exchange was 5,254 RMB/ton, the closing price was 5,120 RMB/ton, and the highest price was 5,274 RMB/ton, with a daily decline of 2.55%. The trading volume was 284,800 lots, and the position was 136,940 lots.

The wood pulp analyst from SunSirs believes that currently, there is still cost pressure on the pulp and paper market operators, and there is a strong atmosphere of competition among market operators. There is an expectation of stabilization after the external prices of imported softwood pulp and hardwood pulp have fallen. However, the weak rise in raw paper market prices has dragged down the trend of pulp prices, and it is expected that wood pulp prices will operate weakly and steadily in the short term.

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