Liangshan Southern Red Agate Production Update: Premium Raw Material Scarcity Pushes Market Prices Upward

Liangshan, Sichuan, May 15, 2024 – The Liangshan Southern Red Agate production area, a key focus in China's jade market, is currently undergoing a significant supply-demand structural adjustment. According to an in-depth field investigation by our reporter and analysis from industry experts, the output of premium raw materials for Liangshan Southern Red Agate continues to decline, leading to increasingly tight market supply. This trend suggests a significant upward pressure on Southern Red Agate prices in the coming period.

Liangshan, as one of the most important Southern Red Agate producing regions in China and globally, boasts a unique geological environment that fosters the growth of richly colored and warm-textured Southern Red Agate. However, years of intensive mining, particularly the over-exploitation of easily accessible shallow veins, have drastically increased the difficulty of acquiring high-quality raw stones. A local mine owner, who wished to remain anonymous, told our reporter, "It's more than twice as hard now to find a good piece of Southern Red material than it used to be. Many mining sites are almost depleted, leaving mostly scraps or lower-quality pieces."

Market data indicates that while the overall raw stone output of Liangshan Southern Red Agate fluctuated over the past year, the supply of premium raw stones meeting collection-grade or high-end processing standards has decreased by approximately 15% to 20% year-on-year. This data has been corroborated by several jewelers and raw stone dealers. Mr. Zhang, procurement manager for a well-known jewelry brand, noted, "We've clearly felt that sourcing has become increasingly difficult and prices are soaring. Especially for those persimmon red or brocade red materials with uniform color, no cracks, and no flaws, they are virtually priceless."

Facing a structural shortage in raw material supply, Southern Red Agate market prices have already begun to show an upward trend. According to industry insiders, the average price of premium Liangshan Southern Red Agate raw stones has risen by about 10% to 15% in the past three months, with some rare, exquisite pieces experiencing even higher increases. It is projected that if supply conditions do not significantly improve, overall market prices could continue to climb by 15% to 25% over the next 6 to 12 months.

Professor Li Ming, a senior expert from the Gemological Association of China, stated in an interview, "The resource characteristics of Liangshan Southern Red Agate dictate its unsustainable nature of mining. The current situation is a result of both resource depletion and robust market demand. For consumers, this means the investment value of high-quality Southern Red Agate will be further highlighted; for the industry, it necessitates a greater focus on rational resource utilization, refined processing, and the enhancement of cultural added value."

Professor Li further pointed out that to address the challenge of raw material scarcity, the industry should actively explore new development paths. These include:

  • Technological Innovation: Utilizing advanced exploration techniques to discover new veins, while strictly controlling mining intensity to protect the ecological environment.

  • Deep Processing: Improving the utilization rate of raw stones, creating high-value artistic pieces even from ordinary materials through exquisite carving techniques and design.

  • Cultural Inheritance and Brand Building: Delving into the historical and cultural connotations of Southern Red Agate, enhancing product added value and market competitiveness through brand storytelling and cultural dissemination.

  • Alternative Material Research: While the uniqueness of Southern Red Agate is hard to replace, exploring the development of other red precious stones can meet some market demands.


These dynamic changes in the Liangshan Southern Red Agate production area undoubtedly serve as a wake-up call for the entire jade industry. It is not only a direct manifestation of resource scarcity but also a profound challenge to the industry's sustainable development model. In the future, finding a balance between resource protection and market demand will be a crucial task for Southern Red Agate and the entire precious stone industry.