Recently, the trading of Bai Shao (White Peony Root) has been very active, with prices continuously rising as the supply moves. In particular, the price of tail Bai Shao has reached 6.5 yuan, and the price for grade four Bai Shao has risen to 10 yuan, marking a significant increase for these two specifications, which will continue to lead the market for Bai Shao. Additionally, the transaction price for high-quality grade one and two products has reached 28 yuan, but finding bulk quantities is increasingly difficult, with such sources almost nonexistent in the market. Other general specifications for grade one and two products are priced at 18-20 yuan, while grades three and four are at 14-15 yuan, all showing notable price increases.
This price increase is indeed rare for Bai Shao and long-time operators. After the high prices in 2013, the market for Bai Shao has not been favorable. It can be said that over the past eight years, Bai Shao has been in a continuous decline, causing great distress to farmers and operators. The end result was that the market for Bai Shao fell into the “basement,” leading to a wave of abandonment among farmers, with some processing units even selling their equipment to seek other opportunities.
As the saying goes, where there is a rise, there is a fall; prolonged rises will lead to falls, and prolonged falls will lead to rises. This is an unchanging law. From a price perspective, the Bai Shao market that has fallen into the “basement” has already hit bottom, and the only way forward is to increase prices; it is merely a matter of time. From a production standpoint, every farmer has reported a return of only 2,000 yuan for five years of planting Bai Shao, with no one making a profit. Therefore, it is a fact that Bai Shao production has shrunk, and perhaps the only ones still committed to planting, aside from the unique culture of Bozhou, are those unwilling to accept the market situation. From a supply perspective, although the overall supply-demand relationship is not yet apparent, certain specifications are already in short supply. Even with the arrival of a new production cycle, it is unlikely that the Bai Shao market will return to last year’s lowest prices.
All signs indicate that the turning point for the Bai Shao market may have arrived, and the price of Bai Shao has stabilized.
I hope to share insights on the market trends of Chinese medicinal materials with everyone. Please follow me on Douyin：戴伟药材道，Douyin ID：dwyaocaidao，Thank you all.
【Writing is not easy, remember to share!】
（Original information, copyright protected by law）
