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Pulp Futures (SP) — Paper's Global Import Contract
SP is the youngest of China's major commodity contracts and a genuinely global one: China imports most of its hardwood and softwood pulp from Brazil, Canada, Chile and Finland, so SP trades global forestry economics in RMB terms. For traders seeking a commodity uncorrelated with metals and chemicals, SP is a genuine diversifier.
Contract Specifications
| Exchange | Shanghai Futures Exchange (SHFE) |
| Symbol | SP |
| Underlying | Bleached softwood kraft pulp (imported, negotiable grade) |
| Contract size | 10 metric tons (air-dried) per lot |
| Price quote | CNY (¥) per metric ton |
| Minimum tick | ¥2 per ton = ¥20 per lot (≈$2.80) |
| Daily price limit | Dynamic band set by the exchange (typically ±4% to ±8%) |
| Day session (Beijing) | 9:00–10:15, 10:30–11:30, 13:30–15:00 |
| Night session (Beijing) | 21:00–23:00 |
| Contract months | Jan–Dec (main contracts cycle: Mar / Jun / Sep / Dec) |
| Last trading day | The 15th calendar day of the delivery month (shifted for holidays) |
| Exchange margin (reference) | Roughly 8–12% of contract value for the main contract |
Specifications are reference values compiled from exchange publications. Margin ratios and price limits are adjusted dynamically — the exchange's latest announcements always prevail.
What the Price Actually Buys You
At a typical price of ¥6,000/ton, one lot is worth ¥60,000 (≈$8,400) — margin near 10% means roughly ¥6,000 (≈$840) controls one lot. Every ¥2 move = ¥20 per lot.
SP's character: long grinding supply-cycle trends driven by global pulp capacity decisions, punctuated by cultural-demand surprises — including the meme-stock era retail squeezes that made SP famous in 2021.
What Moves Pulp
- Global pulp capacity cycles. New Chilean/Uruguayan/Scandinavian capacity additions swing the multi-year balance — supply news defines the long cycle.
- Chinese paper demand. Cultural paper (books, printing), tissue and packaging grades consume the pulp — mill operating rates and paper price data are SP's demand curve.
- Freight and logistics. Bulk freight rates from South America and North America feed landed costs.
- RMB exchange rate. Pulp is dollar-priced and RMB-traded — currency moves directly shift import costs and SP's fair value.
- Retail sentiment. SP has documented history of retail-driven squeezes when physical inventories looked tight — respect abnormal speculative phases.
Why Traders Trade It
Portfolio diversifier. Forestry economics barely correlate with metals/chemicals/energy — SP smooths a commodity portfolio.
Cycle trends. Multi-year capacity cycles produce patient trends positional traders can ride.
What to Watch Out For
- Speculative squeezes. SP's retail-squeeze history means trend-following needs position caps — squeezes end violently.
- Demand-data lags. Paper mill data releases lag; watch physical price quotes from pulp traders as the leading gauge.
Trading Pulp on XS Select
All XS Select evaluations include Pulp and every other major Chinese commodity contract, on real Wenhua Finance market data with institutional liquidity. Commission is set at 2x the exchange standard (charged on open and close) — replicating professional trading conditions.
Ready to trade it? Take the challenge from $29 — pass the evaluation and earn a 10x bonus plus a funded performance account with 50% profit share. Sign up →