SunSirs: The Price of Wood Pulp slightly Declined, or Short-term Weak

According to the data monitoring of SunSirs, the spot prices of softwood pulp and hardwood pulp fell slightly last week. On August 19, the average market price of softwood pulp in Shandong was 7,244 RMB/ ton, down 0.36% compared with the average price at the beginning of the week (the average market price of softwood pulp on August 14 was 7,270 RMB/ ton). On August 19, the average market price of hardwood pulp in Shandong was 6,700 RMB/ ton, which decreased by 0.3% compared with the average price at the beginning of the week (the average market price of hardwood pulp on August 19 was 6,720 RMB/ ton).

According to the observation of market changes, the spot price of softwood pulp is lower as a whole, and the price of pulp futures is lower under the influence of the contract transfer. On the supply side, China's pulp import volume remains low, and the tight supply side still exists, which plays a supporting role in the wood pulp price. While a new round of quotations for the external market was released one after another, and the quotation of Canadian coniferous pulp was lowered, but it remained high.

On the demand side, the spot price of wood pulp remains high, the profit of the paper mill is still poor, the demand for downstream base paper continues to be weak, and the acceptance capacity of some manufacturers for high priced pulp is still general. In addition, the construction of the paper mill continues to be at a medium low level, which has limited support for the pulp market and a strong market wait-and-see atmosphere.

In terms of futures, on August 19, the opening price of SP2301 contract of pulp futures in the previous stock exchange was 6,250 RMB/ ton, and the latest price was 6,284 RMB/ ton, with 179,000 transactions and 149,742 positions. The opening price of SP2209 contract was 6,888 RMB/ ton, and the latest price was 6,890 RMB/ ton, with 28,500 transactions and 35,202 positions.

According to SunSirs wood pulp analysts, the current pulp futures price has stopped falling and has a slight correction. However, due to the downward adjustment of the external quotation, the spot price of wood pulp has dropped slightly. It is expected that the short-term wood pulp price will be weak and volatile in China.

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