SunSirs: China Wood Pulp Prices stopped Rising and Fell, with Short-term Fuctuations and Declines

According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of soft wood pulp and hardwood wood pulp have fallen this week. On June 9th, the average market price of soft wood pulp in the Shandong region was 5,240 RMB/ton, a decrease of 1.24% compared to the average price of 5,306 RMB/ton on June 4th. On June 9th, the average market price of hardwood pulp in the Shandong region was 4,344 RMB/ton, an increase of 1.02% compared to the average price of 4,300 RMB/ton on June 4th.

By observing market changes, it can be seen that the prices of soft wood pulp and broadleaf wood pulp have been in a state of stagnation and decline this week, and pulp futures prices have continued to fluctuate. On June 9th, pulp futures prices saw a significant increase. On the supply side, the shipment volume of imported wood pulp has increased, and the price of wood pulp outer plates has remained stable. In May, China imported 3.156 million tons of pulp, an increase of 30.6% year-on-year and 6.37% month on month. As supply continues to widen, the main contract for pulp increases and decreases.

In terms of demand, the finished paper in the downstream market remains weak, with significant price fluctuations in some regions for cultural paper and white cardboard, which in turn restricts the price of wood pulp. At present, the restrictions on raw material stocking are still on the shipment of finished paper and market expectations, leading to a lack of optimism in replenishing wood pulp stocks. However, the transaction atmosphere in the Spot market of imported wood pulp was flat, and the price dropped slightly.

In terms of futures, on June 9th, the opening price of the SP2309 contract for pulp futures on the Shanghai Futures Exchange was 4,996 RMB/ton, with the latest price of 5,134 RMB/ton, a daily increase of 3.42%, with 527,100 transactions and 244,543 positions.

SunSirs Wood Pulp Analysts believe that global wood pulp inventory continues to rise, leading to a continuous increase in wood pulp shipped to China. In addition, there is uncertainty in downstream demand for finished paper, and demand recovery is less than expected. The market replenishment situation is not good, and it is expected that short-term spot prices of wood pulp may fluctuate and decline in China.

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