According to the data monitoring of SunSirs, the spot price of softwood pulp showed a stable upward trend this week, and the price of hardwood pulp increased slightly. On August 12, the average market price of softwood pulp in Shandong was 6,405 RMB/ ton, an increase of 67.5 RMB/ ton or 1.07% compared with the average market price of softwood pulp in Shandong at the beginning of the week (the average market price of softwood pulp on August 8 was 6,337.5 RMB/ ton). On August 12, the average market price of hardwood pulp in Shandong was 4,757.5 RMB/ ton, an increase of 7.5 RMB/ ton or 0.16% compared with the average market price of hardwood pulp in Shandong at the beginning of the week (the average market price of hardwood pulp on August 8 was 4,750 RMB/ ton).

By observing the market changes, the spot price of wood pulp showed a steady upward trend this week. The price of pulp futures fluctuated and sorted out. The external price in August was mostly stable, and the market wait-and-see mood was strong. Although the frequent price increase letters in the downstream base paper market have played a supporting role in the pulp price, the actual market demand is still relatively weak and has not increased significantly.

Due to the continuous decline of pulp import in July, it has continued to brush the new low since this year. However, with the reduction of external prices in early July and the enhancement of domestic purchase intention, it is expected that the import arrival volume may increase in mid and late August, and the medium and short-term pulp supply may ease. However, with the recent spread of the epidemic in China, the transportation link is limited, which increases the transportation cost and drives the increase of the spot price of wood pulp.

In terms of futures, on August 12, the opening price of the main contract of pulp futures SP2109 of the previous stock exchange was 6,360 RMB/ ton, the closing price was 6,352 RMB/ ton, with 128,542 transactions and 98,101 positions. The opening price of SP2110 contract was 6,312 RMB/ ton, the closing price was 6,278 RMB/ ton, 45,684 transactions and 92,600 positions.

SunSirs wood pulp analysts believe that at present, there is no significant boost on the demand side of wood pulp, and the downstream is still mainly just needed to buy. In addition, affected by the epidemic, the operation of downstream paper mills is insufficient, which also affects the effective volume of pulp. With the arrival of the traditional consumption peak season in September and October, it may drive the increase of demand. It is expected that the short-term wood pulp price may continue to fluctuate at a high level in China.

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