SunSirs: China Wood Pulp Prices is in Short Term Fluctuations

According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of softwood pulp fluctuated this week, while the price of hardwood pulp showed a downward trend. On June 16th, the average market price of softwood pulp in the Shandong region was 5,260 RMB/ton, an increase of 0.38% compared to the average price of 5,240 RMB/ton on June 11th. On June 16th, the average market price of hardwood pulp in the Shandong region was 4,300 RMB/ton, a decrease of 1.01% compared to the average price of 4,344 RMB/ton on June 11th.

From the observation of market changes, the price of softwood pulp fluctuated constantly this week, the price of hardwood pulp continued to retreat, and the price of pulp futures fluctuated upward, supporting the mentality of the Spot market. On the supply side, the recent reduction in production by pulp mills caused by the Canadian fire has led to a rebound in wood pulp prices in line with the news. The expected increase in the arrival volume of hardwood pulp at the port has led to a sustained decrease in prices.

In terms of demand, the prices of finished paper in the downstream market are mostly in a downward trend, and the production has also shown a decline. Therefore, the demand for wood pulp has decreased, and the market remains in a state of just in need of purchasing.

In terms of futures, on June 16th, the opening price of the SP2309 pulp futures contract on the Shanghai Futures Exchange was 5,196 RMB/ton, with the latest price of 5,210 RMB/ton, a daily increase of 0.7%. The transaction volume was 350,700, and the position was 249,112.

SunSirs wood pulp analysts believe that the current wood pulp price maintains a range operation, with prices of softwood pulp and broadleaf wood pulp trending in the opposite direction, and the overall trading volume has not significantly increased temporarily. In addition, due to the emotional impact of the Canadian fire incident overseas, it is expected that the spot prices of wood pulp will remain volatile and organized in China in the short term.

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