Big Differences in Agarwood Prices: Oil Content, Origin and Aroma Are Key

Agarwood prices refer to the market rates for raw agarwood and its products. Agarwood is a fragrant material formed when trees of the Aquilaria genus in the Thymelaeaceae family are wounded and secrete resin, which then undergoes long-term aging. It has medicinal, aromatic and collectible value. Because the resin-formation cycle is long and wild resources are scarce, high-quality agarwood has long been in short supply, and prices overall remain at a high level.

The main factors affecting agarwood prices are oil content, origin and aroma. The richer the resin, the greater the density; agarwood that reaches the sink-in-water grade usually costs noticeably more than agarwood that does not sink. By production area, it is customarily divided into the Hui'an system and the Xingzhou system, and the aromatic styles of different origins differ markedly. Among these, Qinan is regarded as the top grade, and pricing by the gram is not uncommon.

In terms of source, agarwood can be divided into wild agarwood and plantation-grown agarwood. Plantation agarwood promotes resin formation by drilling holes, inoculating fungal strains and other methods; its cycle is relatively short, supply is fairly stable, and the price is more affordable than wild agarwood, making it the mainstream of the current market. Because stocks of old wild material are scarce, its market has risen year by year, and it is mostly used for collecting and high-end products.

It should be noted that the agarwood market has many cases of passing off inferior goods as superior and of counterfeiting. Common methods include injecting oil into white wood, compressing to add weight, and dyeing to imitate aroma. When buying, observe whether the resin lines are natural and smell whether the aroma is mellow, and if necessary send it to a professional institution for testing. In addition, the agarwood market fluctuates with supply, demand and quality, and quotes for the same piece of material may differ greatly across different channels, so it is advisable to compare more and learn more about the market before buying.