According to monitoring by the SunSirs Commodity Market Analysis System, prices for both softwood pulp and hardwood pulp exhibited a weak downward trend in May, while continuing to fluctuate within a low range. As of May 27, the average market price for softwood pulp in the Shandong region stood at 5,050 RMB/ton—a decrease of 0.98% compared to the average price on May 1. On the same date, the average market price for hardwood pulp in the Shandong region was 4,550 RMB/ton—a decrease of 0.94% compared to May 1.
Supply Side: Although overseas pulp mills had plans for production cuts and product switches in May, actual maintenance activities and production reductions remained limited. Shipments have not yet contracted significantly, and the implementation of overseas production cuts has been slow to materialize; consequently, the prevailing loose supply environment is unlikely to change in the short term. Furthermore, pulp imports in April totaled 3.218 million tons—a year-on-year increase of 11.2%—resulting in significant pressure from incoming shipments at ports. Although external quotes for softwood pulp remained flat in May, market trading was sluggish, and pulp mills showed weak willingness to hold up prices.
Wood pulp arrivals at ports were concentrated in early May, easing slightly after the middle of the month, though overall arrival volumes remained relatively high. Softwood pulp faced the greatest pressure from incoming shipments, with large volumes arriving simultaneously from Chile, Northern Europe, and Canada; meanwhile, supplies of Russian softwood pulp continued to flow in, and low-priced softwood pulp imports exerted downward pressure on spot market prices. As of May 21, 2026, sample inventories at China's major pulp ports stood at 2.283 million tons—a month-on-month decrease of 0.7% but a year-on-year increase of 5.8%. Although inventories declined slightly for two consecutive weeks, the rate of destocking was extremely slow, with average daily shipments amounting to only 30,000 to 40,000 tons.
Demand Side: May is traditionally a slack season for the papermaking industry, and demand for cultural paper, white cardboard, and tissue paper all weakened in tandem. Tissue paper manufacturers increased maintenance activities, leading to a decline in operating rates; meanwhile, terminal consumption for white cardboard and offset printing paper remained sluggish, making it difficult for paper mills to implement price hikes and placing their profit margins under pressure. Currently, downstream sectors are primarily focused on destocking their own inventories and show little inclination to replenish raw materials; the prevailing strategy involves "purchasing only to meet immediate rigid demand" and "buying in small batches while bargaining for lower prices," with no signs of large-scale stockpiling. Inventories of finished paper remain elevated, limiting the capacity for wood pulp consumption and further weighing on pulp prices.
Regarding futures: Throughout May, the price of the benchmark wood pulp futures contract generally fluctuated at a low level before breaking downward. As of May 27, the benchmark wood pulp futures contract on the Shanghai Futures Exchange opened at 4,988 RMB/ton, closed at 4,968 RMB/ton, and reached a high of 4,994 RMB/ton; trading volume stood at 227,700 lots, with open interest at 372,400 lots.
According to analysts at SunSirs, the current wood pulp market is characterized by high port inventories, a lingering off-season for demand, and continued heavy arrivals of imported pulp. However, as production cuts overseas gradually take effect, broader market sentiment may see a marginal improvement. In the near term, trading in pulp is expected to proceed steadily, with prices finding themselves in a stalemate—unable to decisively move up or down; consequently, spot wood pulp prices are projected to continue fluctuating and consolidating at low levels in the short term.
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