60% of Chinese herbal medicine prices fall

In the face of a sharp correction in the prices of medicinal herbs, not only did the cost pressures of pharmaceutical plants not be reduced, but some even stopped production, which affected the normal production, supply and sales processes.

The Chinese herbal medicine bull market faded. Yesterday, Chinese herbal medicine company Tiandi.com announced the “August 2012 Drug Market Price Compared with the Same Period of Last Year” (hereinafter referred to as the “Report”), which showed that 66% of the medicine prices on the market fell. For varieties such as White, Ophiopogon, etc. that soared last year, the current price has even dropped to “freezing point”.

A number of soaring varieties have been returned to their original shape

"Report" shows that compared with the prices in August last year, among 559 varieties of Chinese herbal medicines monitored, the number of price-raising species in August this year continued to shrink from the previous period, and only accounted for about 28% of the total amount of premium varieties in the current period. The price cuts continue to expand, accounting for 66%.

Many varieties of Chinese herbal medicines, which were unusually hot last year, have all dived in price this year. Many herbal medicines that soared in the past year have also been quickly returned to the "original form."

According to the monitoring results of Chinese herbal medicines, Tiandi.com, in the Chengdu Hehuachi Chinese herbal medicine market, for example, Chuanyuan, which had reached the highest point of 35 yuan/kg directly from 19 yuan/kg in the previous year, is currently priced at around 10 yuan/kg. The Ophiopogon that had risen from 65 yuan/kg or so to 150 yuan/kg last year also returned about 35 yuan/kg.

Analysts believe that the prices of many medicinal herbs are made by speculation, which has formed a high price phenomenon for medicinal herbs. The situation of making money allows more speculators to enter this market, hoarding a lot of goods, artificially creating an illusion of shortage of herbs, and further raising market prices. Such an illusion has caused the farmers in the source areas to start selling their goods and reluctant sellers, and they have expanded their crops. However, last year's stocks have not yet been sold out, and the mentality of sales has been positive. This year's output has greatly increased. Coupled with the pressures of both inventory and new products, it is currently estimated that 80% of medicinal herbs prices are falling.

The cost pressure of Chinese patent medicine companies did not reduce the price of medicinal herbs. Naturally, many herbal medicine companies have lamented that this year's “business is difficult to do”, but the listed companies of traditional Chinese medicine that have suffered from the cost pressure caused by the soaring prices of Chinese herbal medicines, but not because of the current herbs The depressed market and comfortable pressure. Yangcheng Evening News reporter learned that the prices of herbal medicines that have been significantly reduced make the beneficiaries of price cuts go without direction, lest the incoming goods will fall again, so it would rather stop production and wait and see and not purchase, seriously affecting the normal production, supply and sales relations.

Monitoring shows that the current price of Salvia is RMB 18/kg, which is a drop of 18% from the same period of last year. The products of listed companies that use Danshen as a raw material mainly include Tasly's Compound Danshen Dripping Pills and Baiyunshan A's Compound Danshen Tablets. However, the person in charge of Baiyun Mountain and the Yellow Medicine told reporters that although the price of Salvia miltiorrhiza has dropped, but the price of another medicine must be increased. The data monitored in August showed that the price of Panax pseudoginseng produced in 120 specifications in Yunnan was up by RMB 330/kg from the same period of last year. "Some of the prices of herbal medicines rise and fall, and the feeling of enterprise relieving pressure is not obvious, and if the price reduction is not the main raw material, the cost pressure is equally great."

It is reported that the most popular varieties are Tianqi, Cordyceps, and Taiji. The increase rate is 20%-30% compared with last year. Zhang, a manager of a medicinal herbs company in Guangdong, said that in the case of Cordyceps militaris, which grows larger, it grows in highlands more than 3,000 meters above sea level in Sichuan and Tibet. Generally, it will harvest from April to May every year, and prices will drop in June. However, due to the climate drought this year, Cordyceps not only did not lower prices but increased prices.