SunSirs: China Wood Pulp Prices Fluctuate Upward, with Short-term Narrow Range Fluctuations

According to the monitoring of the commodity market analysis system of SunSirs, the prices of softwood wood pulp and hardwood pulp showed an overall upward trend last week. On July 14th, the average market price of softwood wood pulp in the Shandong region was 5,396 RMB/ton, an increase of 0.11% compared to the average price of 5,290 RMB/ton on July 9th. On July 14th, the average market price of hardwood pulp in the Shandong region was 4,390 RMB/ton, an increase of 0.92% compared to the average price of 4,350 RMB/ton on July 9th.

By observing market changes, it can be seen that both softwood and hardwood pulp prices increased last week, but the increase was relatively small. In terms of supply, the supply in the Spot market is stable. The shipment speed of Qingdao Port increased faster than that of the previous period, and the arrival volume did not change much compared with that of the previous period, showing a de stocking status as a whole. In addition, with the recent release of external quotations, the Silver Star quoted $660/ton in July, with an import cost of around 5,460 RMB/ton in RMB, which has eased the pressure on internal and external inversion.

In terms of demand, the overall transaction volume in the current market is relatively low, with stable and small fluctuations in quotations. The downstream market is still in a state of just in need of purchasing, and the focus of finished paper prices is constantly shifting downwards. Market procurement is more cautious and wait-and-see. Recently, the pulp market has been slightly stronger, which has also driven spot prices to rise.

In terms of futures, on July 14th, the opening price of the SP2309 pulp futures contract on the Shanghai Futures Exchange was 5,350 RMB/ton, with the latest price of 5,360 RMB/ton, a daily decrease of 0.04%. The transaction volume was 536,800, and the position was 315,874.

SunSirs Wood Pulp analysts believe that in the near future, the price of wood pulp has been boosted by external quotations, the depreciation of the RMB exchange rate, the outbreak of wildfires in Canada and the support of domestic peak season expectations, causing price fluctuations to rise. However, weak market demand pressure still exists, and it is expected that short-term spot prices of wood pulp may fluctuate in a narrow range.

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