SunSirs: China Wood Pulp Prices Fluctuate at High Levels, and Short-term Broad Consolidation

According to the data monitoring of SunSirs, the spot prices of softwood pulp and hardwood pulp this week still showed a backtrack and late trend. The average market price of softwood pulp in Shandong was 7,420 RMB/ton on January 12, up 0.82% from the average price of 7,360 RMB/ton on January 8. The average market price of hardwood pulp in Shandong on January 12 was 6,330 RMB/ton, down 1.25% from the average price of 6,410 RMB/ton on January 8.

According to the observation of market changes, the prices of softwood pulp and hardwood pulp are still in the opposite direction this week, with the price difference gradually widening, and the pulp futures prices are significantly lower. The spot price of softwood pulp rose, driven by the strengthening of contracts in recent months, and maintained a high price. However, in January, the external price of wood pulp was reduced, and the import volume increased on a month-on-month basis, which had a certain impact on the price of pulp, and the price of hardwood pulp kept falling.

With the approaching of the Spring Festival holiday, downstream paper mills are preparing for or have been on holiday. The demand in the downstream market continues to be weak, the market turnover gradually decreases, the actual transaction is weak, and the domestic logistics and transportation have been suspended in succession. The downstream is mainly wait-and-see, and most of them are purchasing on demand.

In terms of futures, on January 12, the opening price of the Shanghai Futures Exchange pulp futures SP2305 contract was 6,330 RMB/ton, the latest price was 6,362 RMB/ton, with 147,300 transactions and 174,588 positions.

According to SunSirs wood pulp analysts, with the news of the production of pulp mills coming out overseas, there is an expectation of increasing supply in the future. At present, the market is not willing to receive goods near the holiday, and the demand side shrinks in a narrow range. It is expected that the short-term spot price of wood pulp will maintain a broad consolidation in China.

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