Price trend

According to the data monitoring of SunSirs, this week, the spot prices of softwood pulp and hardwood pulp were still in a downward trend. On July 8, the average market price of softwood pulp in Shandong was 7,078 RMB/ton, down 1.69% from the average price at the beginning of the week (the average market price of softwood pulp was 7,200 RMB/ton on July 3). On July 8, the average market price of hardwood pulp in Shandong was 6,600 RMB/ton, down 0.36% from the average price at the beginning of the week (the average market price of hardwood pulp was 6,624 RMB/ton on July 3).

Analysis review

From the observation of market changes, the spot prices of softwood pulp and hardwood pulp continued to decline this week, and the prices of pulp futures also fluctuated downwards. In the first few days of the week, the price of pulp futures showed a sharp decline, and the commodity market experienced a comprehensive correction. Recently, the market sentiment had improved, which had boosted pulp futures.

In terms of market demand, domestic mainstream ports showed a narrow range of destocking this week, but the overall market demand was still weak, some production lines were still shut down, the operation was insufficient, the profit margin was limited, and the transaction was average. The recent trend of the downstream base paper market was weak, and the acceptance of high-priced wood pulp was still average.

In terms of futures, on July 8, the opening price of SP2209 pulp futures contract on the Shanghai Futures Exchange was 6,620 RMB/ton, the latest price was 6,614 RMB/ton, 272,100 lots were traded, and 171,083 lots were held. The opening price of sp2210 contract was 6,570 RMB/ton, the latest price was 6,582 RMB/ton, the turnover was 47,400 lots, and the position was 50,344 lots.

Market outlook

The wood pulp analyst of SunSirs believes that the current pulp futures prices are frequently rising and falling, but the spot price of wood pulp is still at a high level and adjusted slightly. Recently, the downstream operating rate has rebounded slightly, which has boosted the pulp price. It is expected that the spot price of wood pulp may continue to adjust slightly in the short term.

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