According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of softwood pulp and hardwood pulp have fluctuated downward recently. On August 25th, the average market price of softwood pulp in Shandong Province was 5,816.67 RMB/ton, a decrease of 1.02% compared to the average price on August 17th. On August 25th, the average market price of hardwood pulp in Shandong Province was 4,133.33 RMB/ton, a decrease of 1.59% compared to the average price on August 17th.

On the supply side: The current loose supply situation in the market has not changed, and the market supply is still relatively sufficient. In addition, the sustained high inventory has become the norm, which has put pressure on the price of wood pulp. By the end of 2025, there are still plans to invest over 2 million tons of new pulp production capacity in China. After the end of the seasonal demand peak season, with the resumption of production capacity and the continuous introduction of new capacity, the domestic pulp market will face greater pressure of supply-demand imbalance. As of August 21st, the sample inventory of mainstream pulp ports in China reached 2.132 million tons, an increase of 1.6% compared to the previous period's cumulative inventory of 33,000 tons. The inventory of major ports such as Qingdao Port and Changshu Port has shown a high inventory pattern, and the destocking speed is lower than expected.

In terms of demand: Recently, there has been insufficient momentum for demand recovery, and the raw paper market has been running slowly with meager market profits. Downstream demand has only maintained a strong emotional demand for essential needs, which has generally supported the sentiment of the pulp market and dragged down its trend. But recently, after a 9-month shutdown, Chenming Group has explicitly requested to resume production by the end of August. This news will help increase the consumption increment of the imported pulp spot market in September and may have a positive effect on the future market.

In terms of futures: Recently, pulp futures prices have fluctuated weakly. As of August 25th, the opening price of the main contract sp2511 for pulp futures on the Shanghai Futures Exchange was 5,108 RMB/ton, the closing price was 5,136 RMB/ton, the highest price was 5,154 RMB/ton, the trading volume was 192,400 lots, and the position was 182,141 lots.

The wood pulp analyst from SunSirs believes that the current spot price of wood pulp is currently suppressed by high inventory and weak downstream demand, making it difficult to rebound temporarily. In addition, with the continuous pressure on pulp futures prices and a strong wait-and-see attitude in the spot market, it is expected that pulp prices will remain weakly stable in the short term.

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