According to the SunSirs commodity market analysis system, wood pulp prices fluctuated downward last week, with softwood pulp experiencing a significantly sharper decline than hardwood pulp. On June 5, the average market price for softwood pulp in Shandong was 4,966.67 RMB/ton, down 1.32% from May 31. The average market price for hardwood pulp in Shandong was 4,533.33 RMB/ton, down 0.37% from May 31.

Regarding supply: Overseas pulp mills such as Metsä Fibre (Finland) and Stora Enso have initiated annual scheduled maintenance for June and July, and some North American mills plan to shut down at the end of the month. While expectations of future supply tightening for softwood pulp persist, the maintenance scheduled for early June has not yet materialized, failing to alleviate the current oversupply. Chile's Arauco lowered its export quotes for softwood pulp to China; the resulting drop in import costs further opened up room for domestic softwood pulp prices to fall. Additionally, a large volume of pulp arrived at ports in early June, leading to a significant buildup of softwood pulp inventory. Traders, facing slow inventory turnover, have actively lowered prices to sell stock and recover funds, directly suppressing spot market quotes.

During this period, pulp inventory levels at major ports shifted from accumulation to depletion. As of June 4, sampled inventory at major Chinese pulp ports stood at 2.298 million tons, a decrease of 13,000 tons (0.6%) from the previous period. Inventory at Qingdao Port—a major domestic hub—saw a slight accumulation, with the average daily outflow rate remaining largely unchanged from the previous period. Conversely, inventory at Changshu Port declined; while outflow volume dropped compared to the previous period, the inventory level remained above 80,000 tons.

Regarding demand: June marks the traditional off-season for papermaking, and weakening end-user demand has created a negative feedback loop. Demand for cultural paper remains sluggish; leading paper mills are limiting production based on demand, resulting in a month-on-month decline in pulp consumption. With high inventories of finished paper, mills are prioritizing the reduction of finished product stocks and strictly controlling raw material procurement, limiting purchases to essential replenishment needs. Prices for white paperboard and household paper saw slight support, though the effect was limited. Meanwhile, downstream paper mills generally hold a bearish outlook; they are rejecting high-priced supplies across the board and accepting only low-priced stock offloaded by traders. This has forced traders to lower prices to clear inventory, leading to consecutive drops in spot market quotes.

Regarding futures: Last week, pulp futures prices fluctuated downward, with the overall price level gradually shifting lower. As of June 5, 2026, the main pulp futures contract on the Shanghai Futures Exchange opened at 4,804 RMB/tonne and closed at 4,846 RMB/tonne, reaching a high of 4,862 RMB/tonne; trading volume stood at 329,600 lots, with open interest at 436,700 lots.

Analysts at SunSirs believe the wood pulp market is currently trending downward, driven by ample supply and weak demand during the off-season. The concurrent weakening of the futures market is dampening sentiment in the spot market; consequently, wood pulp prices are expected to fluctuate at low levels in the short term.

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