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SunSirs: The Price of Wood Pulp Fluctuates after May Day, the Short-term Price may be under Pressure

May 10 2021 14:17:05     SunSirs (Selena)

According to the data monitoring of SunSirs, after the May Day holiday, the spot price of wood pulp fell slightly, but then rebounded. The average market price of softwood pulp in Shandong on May 7 was 7,262.5 RMB/ ton, which was 50 RMB/ ton lower than that in Shandong at the beginning of May (7,312.5 RMB/ ton on May 1), a decrease of 0.68%. On May 7, the average market price of hardwood pulp in Shandong was 5,200 RMB/ ton, which was 50 RMB/ ton lower than that in early May (5,250 RMB/ ton on May 1), a decrease of 0.95%.

By observing the market changes, after the May Day holiday, the price of pulp futures jumped high, but then suffered a rapid decline. On the afternoon of May 6, the 06 contract reduced its position and went up. On May 7, the price of pulp futures stabilized and rose, reaching 7,384 RMB/ ton. The spot market price slightly adjusted with the change of commodity price. After May Day, the wood pulp market was relatively active and the supply was stable, but the downstream demand was weak and the market transaction was flat.

At present, from the perspective of market supply, the traditional off-season of domestic paper industry is from May to July. The operating rate of paper mills may decrease and the demand for pulp will also decrease. Therefore, the pulp price will be adjusted during this period.

In terms of futures, on May 7, the opening price of the main contract sp2106 of Shanghai Stock Exchange pulp futures was 7,178 RMB/ ton, and settlement price of the previous day was 7,120 RMB/ ton, with 436,807 transactions and 111,753 positions. SP2109 contract opening price 7,000 RMB/ ton, the settlement price of the previous day was 6,926 RMB/ ton, 123,802 transactions, 70,053 positions.

SunSirs wood pulp analysts believe that after the holiday, the overall performance of the bulk commodity market is strong, driving the pulp futures up, but the festival subsides, the market enters a short off-season, and the performance of the wood pulp spot market weakens. It is expected that the short-term wood pulp price may be under pressure in China.

 

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