SunSirs: The Decline of China Wood Pulp Prices Continues to be Weak and Volatile in the Short Term

According to the data monitoring of SunSirs, the spot prices of softwood pulp and hardwood pulp continued to decline last week. As of November 11, the average market price of softwood pulp in Shandong was 7,390 RMB/ ton, down 1.02% compared with the average price of 7,466 RMB/ ton on November 6. On November 11, the average market price of hardwood pulp in Shandong was 6,700 RMB/ ton, down 0.15% compared with the average price of 6,710 RMB/ ton on November 6.

According to the observation of market changes, the spot prices of softwood and hardwood pulp last week kept declining, while pulp futures prices fell first and then rose. On the supply side, the pulp import volume has improved month on month recently, but it is still weak year on year, and the import of needle pulp is still tight. In addition, the price of the spot end of pulp fell due to the decline of the quotation of the external market, and the market was generally closed in the current situation of sluggish demand.

In terms of demand, the current domestic terminal demand is weak and stable, rising with the cultural paper, but the terminal acceptance capacity is limited. Under the influence of high raw material prices, the paper mill has limited enthusiasm to supplement the stock under the pressure of profits. However, high price spot transactions of pulp are sluggish, consumption in the terminal market is sluggish, and downstream procurement is cautious.

In terms of futures, on November 11, the opening price of the pulp futures sp2301 contract of Shanghai Futures Exchange was 6,620 RMB/ ton, the latest price was 6,812 RMB/ ton, 310,500 hands were traded, and 156,614 hands were held.

SunSirs wood pulp analysts believed that the low position of the pulp was raised on the 11th, and the disk obviously followed the commodity sentiment, but whether the high position could be sustained remains to be seen. Downstream procurement demand continues to compress, the consumption of alternative resources rebounds year-on-year, and the future current pattern continues to remain weak. It is expected that the short-term spot price of wood pulp may still be weak and volatile in China.

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