SunSirs: The Price of Wood Pulp Rises rapidly and Fluctuates at a High Level in China

According to the data monitoring of SunSirs, the spot prices of softwood pulp and hardwood wood pulp rose last week. On September 9, the average market price of softwood pulp in Shandong was 7,430 RMB/ ton, up 2.62% compared with the average price at the beginning of the week (the average market price of softwood pulp was 7,240 RMB/ ton on September 4). On September 9, the average market price of hardwood pulp in Shandong was 6,750 RMB/ ton, an increase of 0.3% compared with the average price at the beginning of the week (the average market price of hardwood pulp was 6,730 RMB/ ton on September 4).

From the observation of market changes, the spot price of wood pulp rose rapidly last week, and the price of pulp futures showed a strong shock trend at the beginning of the week, and then the price of the 09 contract hit a record increase, driving the spot price to rise. In terms of supply, the shipment volume in the international mainstream market has weakened, supported by the high price of external disks, and the decline of the RMB exchange rate, making the high cost support high-priced wood pulp.

In terms of demand, the future demand is not optimistic under the macro weakness. Downstream paper mills basically purchase on demand, and the trading atmosphere is flat. At present, the operating rate of domestic paper mills is relatively general, the profit of paper mills has not improved much, and the weak demand has suppressed the pulp price, so there is a strong wait-and-see sentiment in the spot market.

In terms of futures, on September 9, the opening price of SP2301 contract of pulp futures of the previous stock exchange was 6,780 RMB/ ton, and the latest price was 6,774 RMB/ ton, with a turnover of 194,600 lots and a position of 226,853 lots. The opening price of SP2209 contract was 7,800 RMB/ ton, and the latest price was 8,174 RMB/ ton. 3,034 lots were traded and 7,740 lots were held.

SunSirs wood pulp analysts believe that at present, the price of pulp futures continues to fluctuate and rise, the cost side is strong, the import volume of wood pulp remains at a relatively low level, and the supply side supports the high price of wood pulp. It is expected that the price of wood pulp will continue to fluctuate in China in the short term.

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