Guoxin Futures: Paper pulp market reduces positions and rises, monitoring market stabilization.

Pulp futures surged significantly. The main contract SP2609 traded slightly stronger in the afternoon, up about 1.7% from the previous trading day, with positions reduced by 20,000 lots, bringing total open positions to 210,000 lots. The negative feedback mechanism triggered by continued weakness in downstream demand is spreading upstream to the raw materials segment. As April is the traditional off-season for the paper-making industry, the overall newsprint (paper) market is in a destocking phase, with insufficient end-consumer demand and limited incremental order growth. The decline in raw paper prices directly squeezes processing-profit margins for paper manufacturers. However, in March, pulp import volumes fell year over year, so the cost side still has some support. Keep an eye on whether the market stabilizes on the screen; the operation strategy is mainly based on a short-term long bias. (Guoxin Futures)