How to View the Rising Market of Ligusticum Chuanxiong

The general direction of ligusticum chuanxiong has not changed after the new production,and the market is accompanied by a rebound.

In 2023, the prelude to the new production of Chuanxiong will be kicked off, and the market will also fall back towards the expected value of the merchants. As the price drops, the number of merchants buying goods in the production area will increase, and the supply of goods will be sold smoothly. Why didn't it fall to the lowest value expected by the merchants, and why did the market rebound quickly? The main reasons are as follows.

1. Some production areas of Chuanxiong are affected by the weather, and the yield per unit area decreases.

Ligusticum chuanxiong prefers to a mild climate, abundant rainfall,sufficient sunshine and a relatively humid environment. Extreme weather will have a new impact on its growth, resulting in a decrease in yield. During the growth of Chuanxiong in 2023, it encountered the drought in the autumn of 2022 and the low temperature in the spring of 2023. With the deepening of the new production, the per unit yield of Chuanxiong gradually became clear. Many businessmen reported that the yield per mu in some areas such as Meishan and Jiajiang decreased significantly this year.

2. The general environment of multi-variety growth leads to continuous inflow of funds.

In 2023, many varieties of the market rose, and the increase is obvious. The main reason is that peripheral funds continue to flow into the Chinese medicinal material industry. With many varieties at a high level, the amount of funds entering in Chuanxiong (with the deepening of the new production and the decline in the market) has increased. As a result, the supply of goods in the production area is in a state of panic buying, and the thinking of the holders has changed. So they have begun to hesitate to sell and raise prices.

3. The inventory of ligusticum chuanxiong before the new production is relatively weak

According to statistics, the total output of ligusticum chuanxiong in 2022 was 17,000 tons, and the demand (increased from previous years) was between 15,000-16,000 tons. The volume in the hands of pharmaceutical companies is very weak, because everyone wants to buy the goods after the price of the new product is lowered, which plays a certain role in promoting the price rebound in the later period. Therefore, to truly judge the trend of a variety, we must combine the current situation of the variety and the factors affecting the current market environment.So the current trend of ligusticum chuanxiong is reasonable.