In August, the overall pulp price index of the China Paper Association continued to decline, but the overall volume index increased, indicating signs of market recovery. Specifically, the overall price index fell by 1.03% to 88.93 points, while the overall volume index rose by 2.04% to 81.7 points.
Overall, the pulp spot market remained relatively flat in August, but market demand saw a slight rebound, with overall pulp trading volume increasing compared to the previous month. Pulp prices, supported by the market, remained stable at a low level during the month. However, due to the decline in pulp prices in July, the trading prices of pulp during the month were lower than those of the previous month. Additionally, the price indices for all types of pulp declined in August. In terms of volume indices, except for the continuous decline in unbleached pulp, the volume indices for bleached needle pulp and bleached broadleaf pulp all increased.
Specifically, in August, the transaction volume of bleached needle pulp market decreased while the price increased compared to July. Its price index fell by 0.75% month-on-month to 91.32 points, marking the second consecutive month of decline. Meanwhile, the volume index rose by 5.13% month-on-month to 80.69 points. This month, there was no significant increase in the demand for bleached needle pulp in the spot market, and the market performance remained relatively stable. However, both the import data and index data for August indicated that the transaction volume of bleached needle pulp increased compared to July. In terms of foreign markets, domestic import offers for bleached needle pulp futures in August were mainly downward adjusted, with a decrease of around $20 per ton. Among them, the August quotes for brands such as "Silver Star", "Kelip", and "Moon" dropped to around $580 per ton. According to the latest round of softwood pulp quotations, the futures price of bleached needle pulp in September is expected to increase, with a rise of $10 to $20 per ton. It is reported that the new round of quotations for brands such as "Silver Star", "Beimu", and "Laoma" all increased by $10 per ton. Compared with the same period last year, the downstream paper-making market has performed relatively well this year, and it is expected that pulp prices in September, which is traditionally the peak season for paper-making, will increase.
In August, the trading volume of bleached kraft pulp market increased despite a decrease in prices. Its price index fell 1.25% month-on-month to 83.66 points, while the volume index increased slightly by 0.52% month-on-month to 77.25 points. The spot market price of bleached kraft pulp continued to decline at the beginning of the month, but it found support after falling to the bottom and later operated steadily overall. In terms of demand, the demand for hardwood pulp was relatively weak for most of the month, but it improved later, with an increase in market sourcing activities, indicating positive signs for the bleached kraft pulp market. In the foreign market, the futures prices of bleached kraft pulp generally declined in August. The net price per ton for Brazilian Eucalyptus was between $470 and $480, that for Acacia confusa was $470 per ton, and that for Chilean Star was also $470 per ton. Regarding the futures quotes for bleached kraft pulp in September, Chilean Arauco "Star" was flat, while Russian Ilim "Bukua" was quoted at $10 per ton higher. Other quotes, such as Brazilian Eucalyptus, are currently unclear. Additionally, some pulp mills recently indicated that the demand for bleached kraft pulp in China is expected to be good in the second half of the year. However, considering the expected oversupply due to the commissioning of the OKI pulp mill in Indonesia later, it is uncertain whether the price will rise in the later period.
In terms of natural pulp, both the price index and volume index of natural pulp have declined for two consecutive months in August. Specifically, the price index fell by 1.32% month-on-month to 93.84 points, while the volume index declined by 1.39% month-on-month to 93.17 points. The natural pulp market has been weakening since July, with prices continuously falling. By August, the market remained sluggish, demand slowed down, and both monthly trading volume and prices declined compared to the previous month. In terms of external market dynamics, the price of Chilean Arauco "Venus" was reduced by $20 per ton in August, reaching $560, but there was no clear offer for September; the price of Russian Ilim "Uben block" was not specified in August, but it was quoted at a flat price in September. Currently, driven by the positive demand in the overall packaging market, the downstream kraft paper market for natural pulp is also showing positive signs, and the spot price of natural pulp may stabilize in the later period.