According to the data monitoring of SunSirs, the prices of softwood pulp and hardwood pulp increased slightly in August 2022. On August 29, the average market price of softwood pulp in Shandong was 7,220 RMB/ ton, up 0.28% compared with the average price at the beginning of the month (the average market price on August 1 was 7,200 RMB/ ton). On August 29, the average market price of hardwood pulp in Shandong was 6,714 RMB/ ton, up 0.36% compared with the average price at the beginning of the month (the average market price on August 1 was 6,690 RMB/ ton).
From the observation of market changes, the spot prices of softwood pulp and hardwood pulp both showed an upward trend in early August, while the futures prices of pulp were mixed. As there is no significant change in the supply and demand of pulp, the spot supply is still tight, and the external quotation remains firm, which makes the spot quotation of domestic wood pulp increase. In the middle of August, the spot price of wood pulp was mostly stable, and some traders reduced the price slightly. However, the market demand was insufficient, and the domestic and foreign trade export orders were weakened. The pressure on the market shipment played a certain role in suppressing the pulp price.
In late August, the spot price of wood pulp was lower as a whole, and the price of pulp futures was lower due to the impact of contract warehouse transfer. On the supply side, China's pulp import volume remains low, and the tight supply side still exists, which plays a supporting role in the wood pulp price. While a new round of quotations for the external market was released one after another, and the quotation of Canadian coniferous pulp was lowered, but it remained high. Near the end of the month, the price of wood pulp is mostly stable. Some areas are affected by the power policy, the production load of paper enterprises is reduced, the supply is tight and the expected temperature rise supports the pulp price. The weak downstream demand is an important factor to suppress the pulp price, which makes the spot price wait and see to maintain stability.
In terms of futures, on August 29, the opening price of SP2301 main contract of pulp futures in the previous stock exchange was 6,660 RMB/ ton, and the latest price was 6,566 RMB/ ton, with a turnover of 180,600 and a position of 175,116. The opening price of SP2210 contract was 7,008 RMB/ ton, the latest price was 6,966 RMB/ ton, the transaction was 11,000, and the position was 20,490.
SunSirs wood pulp analysts believe that this month's pulp futures will move from September to January, making the pulp futures price usher in a wave of decline, but the impact of spot price is relatively small, and the price is still at a relatively high level. While domestic demand is weak, external demand is affected by the economic recession in Europe and America, and both supply and demand are weak. It is expected that the short-term spot price of wood pulp may continue to be high and volatile in China.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.