Some Chinese herbal medicines regained their prices

In recent days, Hebei, Henan, Shandong, and Shanxi provinces have experienced different degrees of drought. Affected by this, the output of some Chinese herbal medicines has declined, and the prices have regained momentum.

According to Fu Qingzhu, an information analyst at World Network Information Center of the Information Center of China's Chinese Medicine Association, the recent drought has greatly affected the planting of Salvia miltiorrhiza and Chinese wolfberry. This year's output reduction is inevitable; the Caoxing and licorice from the farmer's family are also seriously affected. In this context, the prices of Chinese herbal medicines such as Panax notoginseng began to rise. At the time of last year's low, there was a 20% increase.

“Originally, the price index for Chinese herbal medicines has dropped from more than 2,800 points at the highest point of last year to 2511. In addition to the prices of nourishing and health-care Chinese herbal medicines, which are still unchanged from last year, other categories have begun to decline in varying degrees. The emergence of the new situation brought new changes to the situation," said Fu Qing.

In fact, the prices of Chinese herbal medicines almost rose across the board in 2010, and many Chinese herbal medicine manufacturers have earned enough money. Among them, there are 151 varieties with more than 100% increase, and extreme varieties such as Taizishen have even increased from 21 yuan/kg to 300 yuan/kg; others include Banlangen, Panax, Psoralea, Campanulaceae, and bergamots. The increase also exceeded 500%.

Regarding Taizishen, which was “hot” last year, Fu Qingzhu believes that although the factors of speculation will not be ruled out, the gap between supply and demand will continue to widen, and the trend of shrinking production will not change. “The cultivation period of the ginseng is 5-6 years. Although last year some areas have already expanded planting, it will take some time to really increase production.”

In this situation, the expectation of price increase of Chinese medicine products is obvious.

In 2011, some traditional Chinese medicine brands have raised their prices. Donga Ejiao announced on January 7 that it raised the ex-factory price of Ejiao. The ex-factory price per kilogram of Ejiao after the price adjustment was close to one thousand yuan, which is the largest increase in the price of Dong-E Ejiao ever. The previous week, Pien Tze Huang Pharmaceutical and Guilin Sanjin announced the same price adjustment on the same day. Pien Tze Huang raised domestic price of Tsai Tzu $20 for each grain of Tsai Tzu from January 1, 2011, and raised its export price by $3.5; Guilin Sanjin raised three gold films. %, 6% of Guilin Watermelon Frost, and 8% of watermelon cream lozenges.

Western securities investment consultants believe that for some of the exclusive Chinese medicine products, the current tension between raw materials highlights, and now some Chinese herbal medicines due to drought and other reasons, prices will increase the production cost of finished drugs. In order to ensure profitability, the expectation for price increase of Chinese medicine products is relatively strong.

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