In August, the overall pulp price index of the China Paper Association continued to decline, while 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 stable in August, but market demand showed a slight rebound, with overall pulp trading volume increasing compared with the previous month. Supported by the market, pulp prices remained stable at a relatively low level during the month. However, due to the decline in pulp prices in July, the trading prices of pulp during August were still lower than those of the previous month. In addition, the price indices for all types of pulp declined in August. In terms of volume indices, except for the continued decline in unbleached pulp, the volume indices for bleached softwood pulp and bleached hardwood pulp both increased.
Specifically, in August, the trading volume of the bleached softwood pulp market decreased while prices increased compared with 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. During the month, there was no significant increase in demand for bleached softwood pulp in the spot market, and overall market performance remained relatively stable. However, both import data and index data for August indicated that the trading volume of bleached softwood pulp increased compared with July. In terms of the international market, domestic import offers for bleached softwood pulp futures in August were mainly adjusted downward, with a decrease of around $20 per ton. Among them, the August quotations 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 softwood pulp in September is expected to increase by $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 papermaking market has performed relatively well this year, and it is expected that pulp prices may increase in September, which is traditionally the peak season for papermaking.
In August, the trading volume of the bleached hardwood pulp market increased despite a decline in prices. Its price index fell by 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 hardwood pulp continued to decline at the beginning of the month but later stabilized after reaching a low point. In terms of demand, the demand for hardwood pulp remained relatively weak for most of the month but improved later, with increased market purchasing activities, indicating positive signs for the bleached hardwood pulp market. In the international market, futures prices of bleached hardwood pulp generally declined in August. The net price per ton for Brazilian eucalyptus pulp ranged between $470 and $480, while that for Acacia Confusa pulp was about $470 per ton, and Chilean “Star” pulp was also priced at around $470 per ton. Regarding September futures quotations, Chilean Arauco “Star” remained flat, while Russian Ilim “Bukua” increased by $10 per ton. Other quotations, such as Brazilian eucalyptus pulp, remain uncertain. In addition, some pulp mills recently indicated that demand for bleached hardwood pulp in China is expected to remain positive in the second half of the year. However, considering the expected increase in supply following the commissioning of the OKI pulp mill in Indonesia, it remains uncertain whether prices will rise significantly in the later period.
In terms of natural pulp, both the price index and volume index 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 declining. By August, the market remained sluggish, demand slowed down, and both monthly trading volume and prices declined compared with the previous month. In terms of international market dynamics, the price of Chilean Arauco “Venus” pulp was reduced by $20 per ton in August to $560, but there was no clear quotation for September. Meanwhile, Russian Ilim “Uben Block” pulp had no quotation in August but remained flat in September. Currently, driven by improving 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.