SunSirs: Wood Pulp Prices Were Stable and Rising, with Short-term Fluctuations and Consolidation

Price trend

According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of softwood pulp and hardwood wood pulp showed an upward trend this week. On May 19th, the average market price of softwood pulp in the Shandong region was 5,310 RMB/ton, an increase of 0.72% compared to the average price of 5,272 RMB/ton on May 14th. On May 19th, the average market price of hardwood pulp in the Shandong region was 4,080 RMB/ton, an increase of 0.74% compared to the average price of 4,050 RMB/ton on May 14th.

Analysis review

By observing market changes, it can be seen that the prices of softwood pulp and hardwood pulp continued to rise this week, while pulp futures prices rose first and then fell. At the beginning of the week, the available supply of goods in the market was slightly tight, with strong market quotations and mostly stable prices. As pulp futures prices fluctuated and rose, supporting the mentality of the wood pulp spot market, prices gradually rose.

In terms of demand, due to the lower cost of wood pulp in the early stage, small and medium-sized paper mills were purchasing in stock. Under the rebound in profits, the enthusiasm for starting work has significantly increased. However, as the prices of finished paper loosened, the inventory of paper mills had accumulated, the procurement pace slowed down, the activity of the market decreased, and both trading volume and holdings had decreased. However, spot quotes still was firm.

In terms of futures, on May 19th, the opening price of the Shanghai Stock Exchange pulp futures sp2309 contract was 5,274 RMB/ton, with the latest price of 5,232 RMB/ton, a daily decrease of 0.95%, with 491,500 transactions and 235,082 positions.

Market outlook

SunSirs Wood Pulp Analysts believe that as of the 19th, the price of wood pulp remained relatively strong, but the trading volume had shrunk. Therefore, whether prices can continue to rise depends on whether downstream demand can improve. It is expected that the spot price of wood pulp may fluctuate and consolidate in the short term.

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