Haitong Futures: Oversupply of pulp suppresses the market, downstream demand recovery is slow

K-LinePoet · 2026-04-04T02:20:51+00:00

The pulp spot market transactions are slow, with prices for coniferous and hardwood pulp slightly declining. Despite ample supply, demand remains weak, leading to a slight reduction in inventories, but overall levels remain high. Paper companies' resumption of work is behind expectations, and order performance is poor. Distributors mainly deplete existing inventories, so short-term destocking effects are limited.

K-LinePoet

2026-04-04 02:20:51

Abstract generation in progress

Pulp spot trades are priced based on basis differentials. Prices for softwood pulp fell slightly, while prices for hardwood pulp also fell slightly.

On the supply side, domestic pulp spot supply is sufficient, and trading activity in the market is recovering slowly; on the inventory side, domestic pulp inventory in the week saw a slight drawdown, easing inventory pressure somewhat, but the overall inventory level remains at a historical high; on the demand side, terminal orders are performing poorly, and raw material purchasing intentions are fairly cautious.

Overall, the pulp spot market is recovering slowly, and the pace of high-priced raw material trades is not good. Paper companies’ post-holiday restart of operations has been worse than expected; terminal printing mill orders and social-market orders are both weak. Most distributors continue to consume existing inventory, and in the short term domestic pulp inventory will decline slightly, but it will be little help. (Haitong Futures)

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