December 29,2020
GPMA editor team
According to China Paper Association, in November 2020, the price index of pulp is 93.00, and the sub-category price indices of Bleached Softwood Pulp (BSP), Bleached Hardwood Pulp (BHP), and Unbleached Kraft Pulp (UKP) are 96.67, 86.42, 97.55, respectively; the volume index of pulp is 74.66, and the sub-category price indices of BSP, BHP and UKP are 77.73, 69.86, 76.92, respectively.
In November, China’s pulp market ran smoothly, and the spot prices of various pulps showed an upward trend. But the market demand showed no obvious signs of improvement, and downstream paper companies basically supplemented their stock on demand. According to China Paper Association, in November, the pulp price index rose 3.04% month-on-month to 93.00, and the volume index rose 0.36% to 74.66. Among them, the volume and price of BSP and UKP increased, while the volume of BHP decreased and the price of it increased.
Specifically, in November, the price index of BSP rose by 2.87% month-on-month to 96.67, and the volume index rose by 0.83% to 77.73. Affected by the rising prices of softwood pulp futures and external offers, the spot price of softwood pulp showed an overall upward trend. At the end of the month, the market reference quotes of the mainstream brand, Arauco’s Silver Star, of BSP was USD 727.6/ton. In terms of external offers, the contract price of Chilean Arauco rose by USD $10/ton to USD $630/ton, and the Russian llim softwood pulp increased by USD $10/ton to USD $610/ton. In November, the softwood pulp spot market continued to be mainly driven by rigid demand. The pulp price increased significantly, but the downstream market was not quite acceptable to high prices. The market demand did not increase and the pulp market transactions were relatively limited. The softwood pulp spot market is expected to be in a continuation pattern at a high price.
In November, the price index of BHP rose 3.27% month-on-month to 86.42, and the volume index fell 1.36% to 69.86. Due to the appreciation of the Renminbi exchange rate and the increased price of external offers, the spot price of BHP increased, and deals relied on negotiation. At the end of the month, the market reference quotes of the mainstream brand, Fibria, of BHP was USD 543.8/ton. In terms of external offers, the contract price of Chilean Arauco rose by USD $20/ton to USD $485/ton; the Russian llim hardwood pulp rose by USD $10/ton. In November, the volume of hardwood pulp market was relatively small, and the market demand was not big. The pulp market was de-stocked slightly. Supported by the positive factors of rising external quotes, the industry has strong bullish expectations. In the short term, hardwood pulp prices are expected to fluctuate upward.
In terms of UKP, the price index in November rose by 2.58% month-on-month to 97.55, and the volume index rose by 2.51% to 76.92. This month, the UKP spot market ran smoothly. The pulp price adjusted slightly, and the overall price rose by about USD 7.66/ton. Deals relied on negotiation. The price of the mainstream brand, Arauco’s Gold Star, was USD 712.3/ton at the end of the month. In terms of external offers, Chilean Arauco’s Glod Star raised its price of UKP by USD $30/ton to USD $595/ton; Russia’s llim rose by USD $20/ton. Judging from the current market, in November, the transaction volume of UKP increased compared with the previous month. The market supply and demand were generally stable, and the pulp price fluctuated in a narrow range. It is expected that in the short term, the UKP spot market may be stable with slight adjustment.