Liangshan Southern Red Agate Raw Material Supply Tightens, Market Prices Poised for Another Surge
Liangshan, Sichuan, May 15, 2024 – Significant changes are unfolding in the raw material extraction activities within Sichuan's Liangshan region, a core production area for Chinese Southern Red Agate. According to the latest reports obtained by our correspondent from the production sites, the output of high-quality Southern Red Agate raw materials continues to decline, leading to increasing market supply tension. Industry insiders widely predict that Southern Red Agate market prices are poised for another round of increases.
For an extended period, the Liangshan region, with its unique volcanic geological conditions, has yielded Southern Red Agate known for its vibrant colors and delicate texture, making it highly sought after by collectors and consumers. However, after years of intensive mining, surface and shallow-layer deposits have gradually depleted. According to an insider from the Liangshan Prefecture Natural Resources Department, the number of newly discovered high-quality mineral veins has sharply decreased in recent years, and existing mining areas face greater extraction difficulties and lower ore recovery rates. An anonymous mine owner stated, “Finding a piece of good-quality Southern Red raw stone is now more than twice as hard as before. Many mine shafts have been dug very deep, and costs are also increasing.”
Market data indicates that over the past year, the average price of Liangshan Southern Red Agate raw stones has cumulatively risen by approximately 15% to 20%. Rare varieties such as high-quality 'persimmon red' and 'cherry red' have seen increases exceeding 30%. According to the “2023 China Jewelry and Jade Market Report” published by the Gem & Jewelry Trade Association of China, the market transaction volume of Southern Red Agate has maintained an average annual growth rate of over 10% in the past five years, with the total market size surpassing 10 billion RMB. However, the report also points out that raw material supply bottlenecks have become a critical factor restricting its further development.
Addressing the current market situation, Professor Zhang Hua (pseudonym), a renowned jewelry and jade appraisal expert and professor at the Gemology Institute of China University of Geosciences (Wuhan), stated in an interview with our newspaper: “The scarcity of Southern Red Agate resources is the core support for its value. The current supply tension is not a short-term fluctuation but the result of long-term mining accumulation. As high-quality raw stones become increasingly scarce, a future price increase for Southern Red Agate is inevitable. Especially for exquisite pieces with collection value, their ability to preserve and increase value will be even more prominent. Consumers should pay more attention to quality and the reliability of origin when purchasing.”
Professor Zhang also reminded market participants that under the backdrop of tightening raw material supply, phenomena such as substituting inferior goods for superior ones and counterfeiting may emerge in the market. He advised consumers and investors to choose reputable merchants and request authoritative appraisal certificates.
Looking ahead, the Southern Red Agate industry may face structural adjustments. On one hand, the scarcity of raw materials will drive the industry towards refinement and high value-added development, with more resources invested in design, carving, and brand building. On the other hand, as prices continue to rise, some ordinary consumers may turn to other alternatives, while the high-end collection market will remain active. Industry insiders predict that within the next five years, the price of high-quality raw stones from Liangshan Southern Red Agate still has room for a 20% to 30% increase, further highlighting its value as an investment and collectible.
The changes in raw material supply in the Liangshan production area undoubtedly serve as a wake-up call for the entire Southern Red Agate market, signaling the arrival of an era that places greater emphasis on quality and scarcity.