Core Viewpoint - The significant decline in traditional Chinese medicine (TCM) herb prices reflects a broader downturn in the TCM market, with many herbs experiencing price drops of nearly 90% from previous highs [2][3]. Price Trends - Prices for TCM herbs such as Ziwun and Cat Claw Grass have plummeted from 80 yuan and over 1,000 yuan per kilogram to 9 yuan and 66 yuan, respectively [2]. - A total of 835 out of 1,095 TCM herb varieties tracked by Kangmei TCM Network have seen price declines this year, representing approximately 75% of the total [2]. - The TCM Comprehensive 200 Index has dropped from 3549.47 on July 18, 2024, to 2812.85 on August 4, 2025 [2]. Market Dynamics - The current price drop is attributed to the aftermath of previous speculative trading, leading to overproduction and excess inventory in the TCM market [3]. - The decline in prices has caused panic among stockpilers and traders, prompting them to liquidate their holdings, further driving down prices [3]. - Experts indicate that the market has not yet fully adjusted, with many industry participants facing significant financial losses due to the price drop [4]. Supply and Demand Factors - The supply of TCM herbs is heavily influenced by weather conditions and regional planting volumes, making it less flexible compared to chemical drug raw materials [5]. - The demand for TCM herbs is driven by consumer health needs, processing into TCM tablets, and production of traditional Chinese patent medicines [5]. - Despite the short-term benefits of lower herb prices for manufacturers and consumers, the long-term implications could harm the stability of the industry due to the adverse effects on farmers [5].

Core Viewpoint - The significant decline in traditional Chinese medicine (TCM) herb prices reflects a broader downturn in the industry, with many herbs experiencing price drops of nearly 90% from previous highs, indicating a market correction after years of speculation and overproduction [1][3]. Price Trends - Prices of specific herbs like Cat's Claw and Aster have plummeted, with Cat's Claw dropping from over 1,000 yuan per kilogram to 66 yuan, and Aster from 80 yuan to 9 yuan [1]. - A total of 835 out of 1,095 TCM herb varieties tracked by Kangmei TCM Network have seen price declines this year, representing approximately 75% of the market [1]. - The TCM Comprehensive 200 Index has decreased from 3549.47 on July 18, 2024, to 2812.85 by August 4, 2025, indicating a significant market downturn [1]. Market Dynamics - The current price drop is attributed to the aftermath of previous speculative trading, leading to overproduction and excess inventory in the TCM sector [3]. - Market panic has led to wholesalers and traders rushing to liquidate stock, further driving down prices [3]. - Experts suggest that the decline in prices has not yet reached a stable adjustment point, indicating ongoing volatility in the market [3]. Supply and Demand Factors - The supply of TCM herbs is heavily influenced by environmental factors, making it less flexible compared to chemical drug production [4]. - The demand for TCM herbs is driven by consumer health needs, production of herbal tablets, and traditional Chinese medicine formulations [4]. - The current imbalance between overproduction and insufficient demand from downstream manufacturers is contributing to the price decline, which may benefit short-term costs but poses long-term risks to industry stability [4].