Pulp futures experienced a volatile upward trend on November 16th.

In terms of supply, the foreign USD quotation is stable, with the recent exchange rate approaching 7.3, and the import cost of pulp remains high, supporting the domestic spot price of imported wood pulp. In terms of international supply, there are expectations of reduced production, and inventory of overseas pulp mills has also begun to decrease. There is a slight downward trend in wood pulp inventory at European ports, indicating that the overseas supply and demand structure is gradually improving. However, the import volume of domestic pulp in October remained high, and the import volume of domestic coniferous pulp has also remained at a historical high since the beginning of this year. The inventory of domestic ports has decreased this week, and the decrease is quite significant, returning to normal levels.

In terms of demand, downstream paper mills continue to adhere to a high price willingness, and the price of finished paper remains relatively strong, but the orders for raw paper have slowed down. Due to increased costs and shipping pressure, the enthusiasm of paper mills to start production has decreased. Overall, positive factors have been realized in the near future. At the same time, there are faint signs of downstream demand weakening after the holiday, which has an impact on short-term spot trading in the market and has led to a decline in pulp futures prices.

At present, due to the urgent demand for purchasing from most downstream paper mills, the inventory days of manufacturers are relatively low. Therefore, we should continue to closely monitor the spot trading situation of pulp.