According to the data monitoring of SunSirs, the spot prices of softwood pulp and hardwood pulp are still in a downward trend last week. As of November 18, the average market price of softwood pulp in Shandong was 7,344 RMB/ ton, down 0.62% compared with the average price of 7,390 RMB/ ton on November 13. On November 18, the average market price of hardwood pulp in Shandong was 6,610 RMB/ ton, down 1.34% compared with the average price of 6,700 RMB/ ton on November 13.

From the observation of market changes, spot prices of softwood and hardwood pulp still fell last week, and pulp futures prices continued to rise slightly. On the macro level, the expectation of slowing interest rate increase in the United States at the beginning of the week and the comprehensive ban on Russian crude oil in Europe and the United States in December have driven the international oil price to continue to rise, the overall strength of energy and chemicals, and played a supporting role in the price of pulp.

However, in terms of demand, there is no obvious increase in domestic terminal demand. With the decline of the operating rate of the paper mill on a month on month basis and the impact of high raw material prices, the profit of the paper mill is under pressure, and the enthusiasm for market replenishment is limited. In addition, with the gradual release of global epidemic prevention and control, domestic supply pressure needs to be eased, so spot prices are falling.

In terms of futures, on November 18, the opening price of the pulp futures SP2301 contract of the Shanghai Futures Exchange was 6,870 RMB/ ton, the latest price was 6,920 RMB/ ton, the number of transactions was 203,300 and the number of positions was 172,103.

Wood pulp analysts of SunSirs believe that the current domestic demand is weak, the profit of the downstream terminal market has not improved for a long time, and the market procurement is still dominated by rigid demand. Although the external macro environment is favorable, the spot price pressure still exists, and it is expected that the short-term spot price of wood pulp in China will be weak and shake.

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