SunSirs: The Price of Wood Pulp Fluctuates in China

According to the monitoring of the commodity market analysis system of SunSirs, the prices of softwood pulp and hardwood pulp continued to rise and fall last week, with mutual fluctuations. On December 22nd, the average market price of softwood pulp in Shandong was 5,850 RMB/ton, an increase of 0.17% compared to the average price of 5,840 RMB/ton on December 17th. On December 22nd, the average market price of broad-leaved wood pulp in Shandong was 5,030 RMB/ton, a decrease of 0.2% compared to the average price of 5,040 RMB/ton on December 17th.

By observing market changes, it can be seen that last week the price of softwood pulp remained stable with an upward trend, while the price of hardwood pulp slightly decreased. Pulp futures have fallen and then risen. In terms of supply, the global shipping market has been volatile recently, so if transportation problems continue, they may affect the import volume of domestic wood pulp in the later stage. The current inventory of pulp at major ports continues to decline, with a decrease in supply, which supports the price of wood pulp.

In terms of demand, the current market lacks enthusiasm for trading, with downstream paper companies experiencing a decrease in operating rates and a weak willingness to purchase raw materials. However, the demand in the terminal market is also slightly weak, and traders have begun to reduce inventory, which has limited support for wood pulp prices. In addition, with fluctuations in the RMB exchange rate and crude oil prices, the price of wood pulp continues to fluctuate and consolidate.

In terms of futures, on December 22, the main contract of SP2405 pulp futures on the Shanghai Futures Exchange opened at a price of 5,780 RMB/ton, closed at a price of 5,804 RMB/ton, and the highest price was 5,896 RMB/ton, with a daily increase of 0.42%. The trading volume was 482,400 lots, and the position was 164,790 lots.

Downstream white cardboard prices have remained stable, with an average market price of 5,240 RMB/ton for 230g-400g white cardboard on December 22. Due to little improvement in terminal demand and a lack of confidence in the future market, the price of raw wood pulp remains at a high level, and the cost pressure on white cardboard still exists, with prices continuing to remain stable. The price of gray based whiteboard paper has continued to decline this week, with an average market price of 4,099 RMB/ton for 250g of gray based whiteboard paper on December 22nd. The current high inventory of traders has led to pressure on paper mill shipments, while downstream market demand is poor. Multi dimensional supply and demand mainly relies on replenishing inventory, highlighting the supply-demand contradiction in the market and continuously lowering prices.

SunSirs Wood Pulp Analysts believe that the current Red Sea shipping incident is receiving more industry attention. If the domestic import quantity continues to decrease, international prices, domestic spot prices, and domestic futures prices may all strengthen. As the end of the year approaches, notices of paper mill holidays are coming one after another, and market operations continue to decline. Demand for wood pulp remains weak, and it is expected that the spot price of wood pulp will continue to fluctuate in the short term.

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