The price of Bai Shao (White Peony Root) has been rising continuously. The price for fresh Bai Shao has reached 7 yuan, and the supply is moving particularly fast. Although the overall supply has been slow recently, the price for bulk Bai Shao is still around 5.5 yuan. Last year, the price for fresh Bai Shao was only about 3 yuan, nearly doubling.
As it is the season for new production, the supply of Bai Shao is moving quickly, and the dried Bai Shao in the market generally contains moisture. The prices for first and second-grade dried Bai Shao have reached 25-26 yuan, while third and fourth-grade Bai Shao are priced at 17-18 yuan, and hand-selected fourth-grade Bai Shao is around 13 yuan, with tail Bai Shao at 7-8 yuan. Compared to last year, the overall market price has increased by 7 yuan, which is a significant rise. Especially, the price for tail Bai Shao has doubled.
Currently, the price of Bai Shao has risen from the beginning of August to the end of August, with the price increase lasting for more than twenty days, setting a record for the longest price increase in recent years. This price trend is particularly surprising as it occurred during the peak production season for Bai Shao. How could the price rise despite the large new production?
There are many factors contributing to the price increase of Bai Shao. Many people in Bozhou may not have anticipated such a strong performance from Bai Shao, which has gradually risen amidst hesitation and skepticism. Despite the large new production season for Bai Shao, there has not been a corresponding increase in market supply. On one hand, the pandemic has disrupted the supply of Bai Shao from other regions, preventing it from entering Bozhou, or causing processing delays that hinder local products from flooding the market. On the other hand, weather conditions have also affected the harvesting of Bai Shao, which has been repeatedly delayed. Although the weather has improved recently, the short-term supply still cannot meet demand. Additionally, the popularity of Bai Shao has been established, especially with many speculative traders actively participating in the rising market, further driving up the price.
It is important to note that the disruption caused by the pandemic may also indirectly confirm that there is not much local supply available for harvesting this year. This may be the fundamental reason for the price increase, as relying solely on local supply has already become problematic.
Looking ahead, Bozhou will soon experience a new round of rainfall, which will undoubtedly impact Bai Shao production. If this round of rainfall lasts for an extended period, it is possible that the price increase trend will continue into September. However, all price increases cannot continue indefinitely; the faster and higher the price rises, the greater the risk. It is hoped that Bai Shao can return to a normal and reasonable value, rather than experiencing a rollercoaster market.
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