SunSirs: The Price of China Wood Pulp fluctuated in June, showing Mutual Fluctuations in the Short Term

According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of softwood pulp and hardwood wood pulp showed a mixed trend in June. On June 29th, the average market price of softwood pulp in the Shandong region was 5,280 RMB/ton, a decrease of 0.49% compared to the average price of 5,306 RMB/ton on June 1st. On June 29th, the average market price of hardwood pulp in the Shandong region was 4,210 RMB/ton, a decrease of 1.64% compared to the average price of 4,280 RMB/ton on June 1st.

By observing market changes, it can be seen that the prices of softwood pulp and hardwood wood pulp were in a state of stagnation and decline in mid to early June. On the supply side, the shipment volume of imported wood pulp has increased, and the price of wood pulp outer plates has remained stable. As the arrival of imported pulp has increased, the supply has continued to widen, and the main contract for pulp has increased and decreased.

In late June, the price of softwood pulp increased and gradually stabilized, while the price of hardwood pulp continued to decline. On the supply side, due to the performance of pulp mills reducing production caused by the Canadian fire, the low price of wood pulp has rebounded and risen 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 finished paper in the downstream market remained weak in June, with significant price fluctuations in some regions for cultural paper and white cardboard, which in turn constrained the price of wood pulp. In addition, the restrictions on raw material stocking and market expectations for finished paper shipments have led to a lack of optimism in replenishing wood pulp stocks. However, downstream markets have shown a decline in production, resulting in a decrease in demand for wood pulp, and the market remains in a state of just in need to purchase. As a result, the transaction atmosphere of imported wood pulp in Spot market was flat, and the price dropped slightly.

In terms of futures, on June 29th, the opening price of the SP2309 pulp futures contract on the Shanghai Futures Exchange was 5,106 RMB/ton, with the latest price of 5,180 RMB/ton, a daily increase of 1.05%. The transaction volume was 343,700, and the position was 248,417.

SunSirs Wood Pulp Analysts believe that the current wood pulp prices remain within a range, with prices of softwood pulp and broadleaf wood pulp showing a stable, moderate, and weak trend. The overall trading volume has not significantly increased temporarily, and it is expected that the short-term spot prices of wood pulp will continue to fluctuate and consolidate.

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