SunSirs: The Price of Wood Pulp fluctuated in China, with Short-term Consolidation

According to the monitoring of the Commodity Market Analysis System of SunSirs, the price of softwood pulp fluctuated last week, while the price of hardwood pulp continued to rise. On August 25th, the average market price of softwood pulp in the Shandong region was 5,380 RMB/ton, which remained stable compared to the average price of 5,380 RMB/ton on August 20th. On August 25th, the average market price of hardwood pulp in the Shandong region was 4,660 RMB/ton, an increase of 0.43% compared to the average price of 4,640 RMB/ton on August 20th.

By observing market changes, it can be seen that the price of softwood pulp remained relatively stable last week, while the price of hardwood pulp continued to rise. In terms of supply, last week, the main port sample warehouse in China reached 1.981 million tons, a 4.9% increase compared to the previous week, showing a cumulative trend for two consecutive weeks. However, pulp futures remain relatively strong, but the performance of spot prices remains weak, with many minor fluctuations and adjustments.

In terms of demand, some downstream cultural paper is relatively strong, and the pace of price increase for household paper is slowing down. The end market continues to be in urgent need of purchasing. As low-priced goods gradually arrive at the port in the early stage, the paper mills mainly consume their own inventory, and their short-term acceptance of high priced raw materials is low. The pace of speculative and restocking demand recovery is temporarily slower than expected.

In terms of futures, on August 24th, the opening price of the SP2401 pulp futures contract on the Shanghai Futures Exchange was 5,610 RMB/ton, with the latest price of 5,604 RMB/ton, a daily increase of 0.47%. The transaction volume was 452,900, and the position was 234,950.

SunSirs Wood Pulp Analysts believe that the current decline in Canadian strike factors and the expected rebound in domestic imports to Hong Kong have temporarily brought an end to the impact of previous overseas supply. Although downstream finished paper prices have stabilized, the degree of seasonal improvement in demand still needs to be verified by the market, and it is expected that the short-term spot prices of wood pulp will be in a range consolidation state.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.