Mount Liangshan Southern Red Agate Market Faces Upward Price Pressure Amid Intensifying Supply-Demand Imbalance
Liangshan, Sichuan, October 26, 2023 – The core production area of Chinese Southern Red Agate, the Liangshan region in Sichuan, has recently experienced significant changes in its raw stone mining activities. According to an in-depth investigation by our reporter in the production area, the output of high-quality Southern Red Agate raw stones is continuously shrinking. This trend is not only exacerbating the tight supply in the market but also signals a potential new round of price increases for Southern Red Agate.
Southern Red Agate, with its warm texture, vibrant red color, and unique historical and cultural heritage, has long been favored by collectors and consumers. As its main production area, Liangshan's mining dynamics directly affect the entire Southern Red Agate market.
Scarcity of High-Quality Raw Stones, Rising Mining Difficulty
According to local miners and dealers, with the gradual depletion of easily accessible veins in recent years, new mining sites are often hidden deep underground or in treacherous terrains. This has led to a significant increase in mining costs and a substantial decrease in the discovery rate of high-quality raw stones. A local mine owner, who wished to remain anonymous, told our reporter: “It’s several times harder to dig out a good piece of Southern Red Agate now than before. Often, after investing a lot of manpower and resources, we can only find some scraps or materials of average quality.”
Industry data shows that over the past five years, the annual output of high-quality Southern Red Agate raw stones in the Liangshan region has cumulatively decreased by approximately 30% to 40%. For instance, in 2018, the estimated annual output of high-quality Southern Red raw stones in Liangshan could reach 200-300 tons, while by 2022, this figure had plummeted to less than 150 tons. It is projected that in 2023, under the dual pressure of strict environmental policies and resource depletion, the output of high-quality raw stones may further decline by 10% to 15%.
Market Supply-Demand Imbalance, Price Transmission Effect Evident
The tightening supply directly leads to market price fluctuations. In several major raw stone trading markets in Liangshan, such as Zhaojue and Meigu, the transaction prices of high-quality Southern Red raw stones have shown a clear upward trend. According to market analyst Li Ming (pseudonym): “Currently, the average price of mid-to-high-end Southern Red Agate raw stones has increased by at least 15% to 20% compared to the same period last year. Especially for exquisite materials with pure color, strong gelatinous texture, and no cracks, the increase has even exceeded 30%.”
Li Ming further pointed out that this price increase is not a short-term speculative behavior but is based on real changes in supply and demand. He expects that as inventories are gradually consumed and new material output remains low, the prices in the Southern Red Agate finished product market will also be affected within the next 6-12 months, with the increase being even more significant for high-end custom and collector-grade pieces.
Experts Call for Rational Investment and Sustainable Development
Professor Wang, a senior expert from the Gem and Jewelry Trade Association of China, stated in an interview: “The scarcity of Southern Red Agate resources is a crucial support for its value. The current dynamics in the Liangshan production area once again remind us that all non-renewable resources face the risk of depletion. For consumers, while the current upward trend in market prices does offer opportunities for some investors, rational investment is paramount. One should fully understand its quality, origin, and market conditions. For the industry, we should focus more on how to promote the sustainable development of the Southern Red Agate industry, for example, by optimizing mining techniques, improving processing craftsmanship, and expanding cultural and creative products to achieve effective resource utilization and maximum value.”
Professor Wang also suggested that the industry should strengthen research and development investment in Southern Red Agate, explore its geological genesis, and actively seek new potential mining areas to alleviate current supply pressures. At the same time, he emphasized the importance of combating illegal mining and smuggling to maintain a healthy market order.
Looking ahead, the market trend of Liangshan Southern Red Agate will continue to be influenced by multiple factors such as output, market demand, and the macroeconomic environment. However, the increasing scarcity of high-quality raw stones has become an undeniable fact, which will continue to drive the steady appreciation of Southern Red Agate's value, making it occupy an even more important position in the jade collection market.