SunSirs: Multiple News Boost, Wood Pulp Futures Fluctuated and Rose

On March 7th, pulp futures surged, with the main contract SP2405 closing 2.06% higher at 5,936 RMB/ton. According to reports, the Finnish central organization SAK, which has been organizing political strikes since last autumn, announced a new round of strikes on Wednesday (March 6th). The organization stated that a new round of strikes will start next Monday (March 11th) and last for up to two weeks. Finland is one of the main importers of Chinese coniferous pulp, and worker strikes will have an impact on port operations.

At the same time, news shows that leading paper companies such as Jinguang Paper, Chenming Paper, and Sun Paper have launched a new round of price hikes, mainly targeting all cardboard foot products and all cardboard ultra-high pine products. Among them, all Zuke products will increase their current selling prices by 200 RMB/ton, and all super high pine products will increase their current selling prices by 300 RMB/ton. The price increase letter shows that this round of price increase will officially start from April 1st.

March is the traditional peak season for the cultural printing paper market, with publishing bidding work about to begin and some party building orders released. The price of cultural paper has increased, which is expected to improve the market profit structure. With the release of traditional peak season expectations from March to May, paper prices are facing an upward market environment.

After the holiday, pulp futures are in an upward trend, and this Thursday's sharp rise is a continuation of the previous trend. Specifically, before the holiday, the market was bearish on future demand expectations, and the futures price of pulp fell at a discount, reaching around 5,500 RMB/ton in the short term. After the holiday, driven by the increase in prices in the external market, the market has expectations of repairing deep discounts, and the post holiday period prices are steadily rising and consolidating.

In January, major cultural paper companies announced that they would raise paper prices by 100 and 200 RMB/ton respectively in February and March. From the current market performance, the price increase in the downstream market has basically been implemented, and the peak season effect on the demand side has begun to emerge. The market situation has performed better than expected. At this point, pulp has maintained a relatively strong performance.

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