SunSirs: The Decline of Wood pulp Was Becoming Increasingly Severe, and It Will Continue to Decline in the Short Term

Price trend

According to data monitoring by SunSirs, the decline in spot prices of softwood pulp and hardwood pulp widened this week. On March 24th, the average market price of softwood pulp in Shandong was 6,280 RMB/ton, a decrease of 4.85% compared to the average price of 6,600 RMB/ton on March 19th. On March 24th, the average market price of hardwood pulp in Shandong Province was 5,320 RMB/ton, a decrease of 3.8% compared to the average price of 5,530 RMB/ton on March 19th.

Analysis review

From the perspective of observing market changes, the price decline of softwood pulp and hardwood pulp had intensified this week, and pulp futures prices had also continued to decline. Recently, there had been a continuous negative commodity fundamentals, and domestic port inventory had also shifted from destocking to accumulating this week. With the continuous launch of new production capacity at home and abroad, future supply is expected to gradually loosen.

As of the 24th, domestic wood pulp spot prices had both declined, market demand was sluggish, and buyers were inactive in purchasing, mostly in small orders on demand. The lack of confidence in the futures and spot market and the heavy pessimism in the market had led to prices falling again and again.

In terms of futures, on March 24th, the opening price of the Shanghai Stock Exchange pulp futures contract SP2305 was 5,700 RMB/ton, with the latest price of 5,830 RMB/ton, a daily increase of 2.57%, with 28.5 transactions and 158,170 positions.

Market outlook

According to wood pulp analysts from SunSirs, as of the 24th, weak downstream demand in the wood pulp market had led to continuous downward pressure in prices. In addition to the recent continued strength of the RMB, the resistance to rebound in wood pulp prices had increased. It is expected that the spot price of wood pulp will continue to decline in the short term.

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