SunSirs: China Wood Pulp Prices are showing an Increase, with Short-term Fluctuations and Consolidation

According to the monitoring of the Commodity Market Analysis System of SunSirs, the prices of softwood pulp and hardwood wood pulp have shown an upward trend this week. On July 7th, the average market price of softwood pulp in the Shandong region was 5,390 RMB/ton, an increase of 2.08% compared to the average price of 5,280 RMB/ton on July 2nd. On July 7th, the average market price of hardwood pulp in the Shandong region was 4,350 RMB/ton, an increase of 3.33% compared to the average price of 4,210 RMB/ton on July 2nd.

By observing market changes, both coniferous and hardwood pulp prices have shown an upward trend this week. Supply side disturbance news continues, with about 7,400 workers from more than 30 ports in Canada starting strikes. As of the 4th, the strike is still ongoing, which may have a certain impact on the later transportation of forest pulp and paper, thus highlighting the tense supply atmosphere.

In terms of demand, the downstream market is weak and stable, still in a state of just in need of purchasing, and the market is in the off-season, with poor positive support. But with the depreciation of the exchange rate and the impact of rising raw material costs, the price of wood pulp orders has increased. In addition, the recent general rise in pulp futures market commodities has led to an upward trend in the bullish atmosphere of increasing pulp holdings.

In terms of futures, on July 7th, the opening price of the SP2309 pulp futures contract on the Shanghai Futures Exchange was 5,322 RMB/ton, with the latest price of 5,290 RMB/ton, a daily decrease of 0.97%. The transaction volume was 525,100, and the position was 309,699.

The prices of downstream white cardboard and gray bottom white board paper have remained stable. On July 7th, the average market price of 230g-400g white cardboard paper was 4,673.33 RMB/ton, and on July 7th, the average market price of 250g gray bottom white board paper was 4,199 RMB/ton. This week, the prices of white cardboard and gray background white board continued to hover at low levels, and the market trading during the off-season was average. The actual market transactions were mostly based on negotiations. In the face of insufficient market demand, orders from downstream printing and packaging factories have steadily declined, and procurement progress has been slow. Mainstream paper mills mainly focus on digesting inventory, while traders mostly focus on stable shipments with relatively few price changes.

SunSirs Wood Pulp analysts believe that the recent high prices of wood pulp have led to the addition of 700,000 tons of needle leaf production capacity overseas, and most of it is planned to be sold to the Asian market, which may negatively affect the trend of forward delivery products. It is expected that short-term spot prices of wood pulp will temporarily fluctuate and consolidate.

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