SunSirs: The Price of Wood Pulp Continues to Decline and Remains Volatile in China in the Short Term

https://www.chemnet.com   Jun 24,2024 SunSirs

According to the monitoring of the commodity market analysis system of SunSirs, the prices of coniferous wood pulp and broadleaf wood pulp continued to decline last week. On June 21st, the average market price of coniferous wood pulp in Shandong was 6,360 RMB/ton, a decrease of 0.62% compared to the average price of 6,400 RMB/ton on June 16th. On June 21st, the average market price of broad-leaved wood pulp in Shandong was 5680 RMB/ton, a decrease of 1.73% compared to the average price of 5,780 RMB/ton on June 16th.

By observing market changes, it can be seen that the spot price of wood pulp remained in a downward trend last week. In terms of supply, the issue of international strikes has been alleviated. Against the backdrop of low inventory pressure from replenishment pulp factories in Europe and America, foreign quotations continue to be strong, providing support for the domestic market.

According to domestic port data, as of June 20, 2024, the sample inventory of mainstream pulp ports in China was 1.823 million tons, an increase of 1.8% compared to the previous period. The inventory showed a narrow accumulation trend this week, and the acceleration of pulp consumption was limited due to the average trading sentiment of downstream manufacturers and the atmosphere of demand for goods.

In terms of demand, the current downstream demand in China has entered the off-season, and the overall improvement in market transactions is limited, with some cases of inversion still remaining. The raw paper manufacturers continue to be light, and there is little room for short-term increase in raw paper prices. The operating load within the factory remains at a moderate level, so downstream markets have poor purchasing sentiment for raw wood pulp and limited support for wood pulp prices.

In terms of futures, the prices of wood pulp futures have been fluctuating recently. On June 21st, the main contract of SP2409 pulp futures on the Shanghai Futures Exchange opened at 5,946 RMB/ton, closed at 5,886 RMB/ton, and the highest price was 5,956 RMB/ton, with a daily decline of 0.74%. The trading volume was 233,200 lots, and the position was 234,415 lots.

SunSirs Wood Pulp Analysts believe that some external pulp quotes remain unchanged in July, providing support for the domestic market. However, due to the increase in domestic pulp port inventory and weak downstream demand, the market is mainly focused on just in demand transactions, and it is expected that the spot price of wood pulp will continue to fluctuate in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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