According to the monitoring of the commodity market analysis system of SunSirs, the prices of softwood pulp and hardwood pulp continued to decline last week. On March 7, 2025, the average market price of softwood pulp in Shandong Province was 6,570 RMB/ton, a decrease of 0.61% compared to the average price on March 1. On March 7th, the average market price of hardwood pulp in Shandong Province was 4,736 RMB/ton, a decrease of 1.74% compared to the average price on March 1st.

On the supply side: Currently, there is still disturbance in the overseas supply side, and there is an expectation of a reduction in pulp supply in the future. The external USD quotation fluctuates strongly, supporting the spot price of imported wood pulp in China. The recent price correction is mainly due to the impact of accumulated inventory and loose spot factors in trading ports, coupled with the unexpected increase in the import volume of broad-leaved pulp, which has led to high pressure on port inventory and a relatively greater downward trend.

On the demand side: Due to the active stocking of paper mills before the holiday, downstream paper mills in China have shown average resumption of work after the holiday, resulting in weak purchasing willingness and strong pressure on prices. Although paper-making enterprises have resumed production in an orderly manner, they are constrained by the slow pace of terminal consumption recovery and the obvious lack of momentum for replenishing inventory in the industrial chain. The spot market still maintains low trading volume operation.

Domestic port data: Last week, pulp port inventory shifted from accumulated to depleted. As of March 6, 2025, the sample inventory of mainstream pulp ports in China was 2.25 million tons, a decrease of 50,000 tons from the previous period and a decrease of 2.2% compared to the previous period. Last week, the inventory of pulp in the mainstream domestic port of Qingdao showed a trend of destocking, with broad-leaved pulp accounting for a relatively large proportion. Changshu Port's inventory showed a slight trend of destocking, with shipments approaching 110,000 tons within the week. The remaining main port inventory quantities have been slightly adjusted to maintain normal inventory changes.

In terms of futures, the overall performance of pulp futures prices remained weak last week. As of March 7, 2025, the opening price of the main contract sp2505 pulp futures on the Shanghai Futures Exchange was 5,878 RMB/ton, the closing price was 5,864 RMB/ton, and the highest price was 5,918 RMB/ton, with a daily increase of 0.31%. The trading volume was 193,500 lots, and the position was 190,711 lots.

SunSirs wood pulp analyst believes that the current wood pulp market is still in a state of strong supply and weak demand, and the price of finished paper increased in March, leaving room for profit recovery. Therefore, after the pulp price falls to a low level, there is a probability that the positive impact of demand recovery will become stronger, and it is expected that the short-term spot price of wood pulp will remain mainly in a range of fluctuations.

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