At the beginning of the year, the cultivation of Cang Zhu (Atractylodes) had successfully expanded on a large scale. However, due to the high market prices and a general lack of optimism, the sudden outbreak of the pandemic disrupted the market dynamics. What was expected to be a downward trend in prices experienced a significant reversal. After the outbreak, many preventive and therapeutic formulas included Cang Zhu (Atractylodes), leading to a surge in demand and a price spike to 150 yuan.
As the pandemic stabilized and the spring harvest began, the price of Cang Zhu (Atractylodes) gradually fell back to around 120 yuan, the level before the price increase. Reports from production areas after the harvest indicated that this year’s new supply was still limited. Although prices were higher, they stimulated farmers’ enthusiasm for harvesting, but the reality was that resources were severely depleted.
Initially, it was thought that the large-scale cultivation had been successful and that products were available on the market. Although there were some differences in quality, other testing aspects still showed a certain pass rate, which would somewhat fill the market gap. Thus, it was expected that Cang Zhu (Atractylodes) would not see another price increase. However, Cang Zhu (Atractylodes) changed everyone’s expectations once again.
Recently, during a period that should have been calm, the price of Cang Zhu (Atractylodes) has once again surged, increasing by about 5 yuan. Why has the price rebounded?
I believe one of the main reasons is that there have been recent outbreaks of the pandemic in certain regions of the country. Most of these cases are imported and not severe, consisting mainly of mild or asymptomatic infections. During the initial pandemic period, Chinese medicine demonstrated significant efficacy in treating mild symptoms. With the re-emergence of cases, the government has once again prioritized Chinese medicine for treatment, leading to a noticeable increase in market demand.
Additionally, during the initial pandemic period, the already limited stock of Cang Zhu (Atractylodes) was significantly depleted. Although the spring harvest replenished some supply, the short-term increase in demand for this already high-consumption herb has made the situation quite tight.
The large-scale cultivation of Cang Zhu (Atractylodes) has been successful, and last year’s harvested stock has almost sold out. The large-scale harvesting of cultivated products will not occur until September. Although cultivation has been successful, the planting cycle of 2-3 years means that the harvesting period is insufficient, and the output from cultivated sources is limited, failing to meet part of the market demand.
The second half of the year is the peak season for Chinese herbal medicine consumption, especially with the upcoming September 9th herbal medicine fair. After this festival, the market for Chinese herbal medicine typically becomes more active, and demand will increase. After the recent 5 yuan price rebound, the price of Cang Zhu (Atractylodes) has temporarily stabilized at 125 yuan for the whole stock from Inner Mongolia. Future market trends are uncertain, but after this price rebound, market traders have clearly begun to accept the situation, and we will continue to monitor and report on future developments.
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