China Wood Chips Weekly Report

The domestic wood chip market in China is undergoing a four-dimensional restructuring driven by policy, pulp futures, raw material supply and end-paper demand. This weekly brief breaks down regional price divergence, upstream-downstream transmission logic and key variables for the second half of 2026, for pulp & paper industry practitioners, raw material suppliers and paper mill purchasers.

1. Sharp Regional Price Divergence: Guangxi Slumps vs Shandong Holds Firm

Guangxi (Eucalyptus Chip Leading the Decline)

As of June 8, Grade A eucalyptus wood chips in Beihai fell from 1,230 CNY/MT to 1,210 CNY/MT, a 20 CNY drop. Acacia & pine chips declined synchronously by 20–30 CNY/MT, with Nanning market following the downward trend.

Bamboo chips remained weak: Chenghui Paper (Guangxi) suspended bamboo chip procurement for 15 days, a clear signal of sluggish downstream demand. Sun Paper's disc bamboo chips retreated 40 CNY from May peak to 1,140 CNY/MT.

Shandong Price Floor Maintained

Sun Paper kept poplar wood chips stable at 1,300 CNY/MT, pine chips at 1,310 CNY/MT. Distinct regional price barriers are formed by long-distance procurement networks and mill self-supply strategies.

False Short-term Rebound in Dongguan

Eucalyptus chips in Dongguan rebounded 40 CNY to 1,250 CNY/MT, but this is only a passive stock-up move caused by reduced arrivals. The 12-day suspension of pine chip collection further proves supply chain compression pressure.

2. Negative Transmission Chain From Finished Paper Upstream

Port pulp inventory stood at 2.298 million tons with slow destocking → Weak pulp benchmark prices → Paper mills cut procurement budgets for wood chips → Continuous slide of wood chip raw material prices.

So far, price hikes of finished paper have not been passed on to upstream wood chip sectors, blocking profit recovery for raw material suppliers.

3. Long-term Structural Market Shifts

Policy Impact: National Standard GB/T 7909-2017

The standard expands the usable range of hardwood chips, pushing up the proportion of eucalyptus chips nationwide. However, inconsistent implementation among small & medium paper mills widens cross-regional price gaps.

Import Pattern Restructuring (2025 Full-year Data)

• Total wood chip imports dropped 9% to 16.12 million tons
• Vietnam remains the top source, accounting for 69.6% of total imports
• Australia supply rose 15% against the trend
• Softwood chip supply is tight (less than 3% of total imports), further boosting demand for hardwood alternatives like eucalyptus and poplar

4. Mill Strategy & H2 2026 Forecast

Self-sufficiency Competition: Large integrated mills build 1,000-kilometer raw material procurement networks. Chenming Huanggang base pays a 15% premium for local pine chips, reflecting obvious geographical cost differences.

Three core variables to watch in H2:

1. Full implementation of price adjustments by Nine Dragons Paper
2. Critical support level of pulp futures at 4,800 CNY
3. Cost bottom defense line of 1,140 CNY for Nanning eucalyptus chips

Short-term prediction: Wood chip prices will fluctuate sideways within ±20 CNY/MT with no obvious upward momentum.

Core Conclusion

China's wood chip sector is reshaped by national standards, pulp capital futures, natural raw material endowments and end-market paper demand simultaneously. Price recovery in the second half of 2026 can only be realized when port pulp destocking coincides with seasonal peak paper demand.

For wood chip suppliers, paper mill procurement teams and pulp traders, keep tracking regional price gaps and inventory cycles to optimize purchasing & sales timing.

If you need customized regional wood chip quotation charts or mill procurement case analysis, feel free to contact us.