According to monitoring by the SunSirs Commodity Market Analysis System: This week, prices for softwood pulp trended weakly downward amidst sluggish trading activity, while prices for hardwood pulp experienced a slight, gradual decline. As of May 22, the average market price for softwood pulp in the Shandong region stood at 5,033.33 RMB/ton—a decrease of 1.95% compared to the average price on May 17. On May 22, the average market price for hardwood pulp in the Shandong region was 4,550 RMB/ton—a decrease of 0.73% compared to the average price on May 17.
Supply Side: In April, domestic pulp imports totaled approximately 3.218 million tons—a month-on-month decrease of 2.4%—yet the pressure from incoming shipments remains undiminished. Overseas wood pulp offers have held steady, though the domestic market's ability to support these prices is limited. Furthermore, the implementation of production cuts by overseas pulp mills has been slow to materialize, making it difficult to alleviate domestic supply pressure in the short term. Meanwhile, domestic pulp production remains stable; with ample supplies of hardwood pulp and chemical-mechanical pulp available, these varieties are exerting downward pressure on lower-priced pulp grades.
During the current cycle, pulp inventories at major ports have shown a trend of slight destocking, marking the second consecutive week of inventory reduction. As of May 21, 2026, the sample inventory volume at China's mainstream pulp ports stood at 2.283 million tons—a reduction of 16,000 tons from the previous period, representing a month-on-month decrease of 0.7%. Within this cycle, inventories at Qingdao Port—one of the major domestic pulp hubs—showed a slight trend of accumulation, while the average daily outbound shipment rate at the port remained largely unchanged from the previous cycle. Inventories at Changshu Port continued their destocking trend; outbound shipments at the port remained largely consistent with the previous cycle, exceeding 100,000 tons. Inventories at other ports experienced varying degrees of minor accumulation or destocking, with volumes remaining within their normal fluctuation ranges.
Demand Side: The market is currently enduring its traditional off-season; demand for cultural paper, packaging paper, and tissue paper is simultaneously weak, resulting in sluggish terminal demand. Downstream paper mills are operating at reduced rates and facing pressure on profit margins; most mills are prioritizing inventory reduction and remain cautious regarding the replenishment of raw wood pulp stocks. Market trading activity has been dominated primarily by small-lot purchases driven by immediate necessities, often accompanied by price-bargaining; consequently, the market appears distinctly weak and lacks effective support.
Regarding futures: This week, pulp futures prices trended downward weakly, breaching a key support level. As of May 22, 2026, during the night trading session, the benchmark pulp futures contract on the Shanghai Futures Exchange opened at 4,926 RMB/ton, closed at 4,912 RMB/ton, and reached a high of 4,942 RMB/ton; trading volume stood at 272,700 lots, with open interest at 394,700 lots.
Analysts at SunSirs specializing in wood pulp observe that, given the current market state—characterized by strong supply and weak demand—there are currently no strong bullish catalysts in play. Market participants should closely monitor key indicators such as inflection points in port inventories, a rebound in operating rates among downstream industries, and fluctuations in international market quotes. It is anticipated that wood pulp prices will continue to trend weakly in the short term as they undergo a bottoming-out process.
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