Persistent high temperatures swept across China in mid-August, casting a strong atmosphere of the traditional summer off-season over the chemical market. The silica industry stepped out of the stalemate driven by previous rising raw material costs. Slightly falling upstream raw material prices opened up more room for negotiation, yet no unified price surge or decline emerged across the sector, and structural divergence remained the dominant market trend. Conventional low-grade precipitated silica suffered sluggish domestic demand from the tire industry. Coupled with the leeway brought by cheaper raw materials, its transaction prices dipped moderately. In contrast, high-end fumed silica applied to photovoltaic encapsulation, lithium battery separators and electronic silicone rubber was immune to the off-season downturn. Sustained rigid demand from domestic emerging industries and steady inflows of overseas orders kept its supply tight and prices stable and firm, with the benefits of cheaper raw materials barely passed on to premium grades. Overall, the interplay of easing raw material costs, stark gaps between strong and weak domestic demand, and steady overseas underpinning has slightly altered the operational logic of the silica market during the off-season.

　　Prices of the two core upstream raw materials slipped slightly on the whole, weakening cost support, while regional north-south price gaps persisted. Sodium silicate, the foundational feedstock for precipitated silica, has seen abundant nationwide supply recently. Small and medium-sized sodium silicate manufacturers maintained high operating rates, leading to inventory accumulation. Producers cut quotations voluntarily to speed up capital turnover, with an overall decline ranging from 1% to 2%. Only a few mining areas in Northwest China recorded limited price drops due to transportation restrictions on quartz sand. Prices trended lower across major production zones including East China, North China and South China, directly pulling down the cost baseline of precipitated silica. Sulfuric acid posted a more obvious downturn: downstream facilities for chemical fertilizers, coatings and metallurgy operated at low loads in most chemical parks nationwide, curbing sulfuric acid consumption and triggering severe inventory backlogs. Price cuts to boost shipments became prevalent, with sulfuric acid prices falling roughly 3% month-on-month in East and South China. North and Northwest China barely slowed the decline relying on steady short-term industrial demand, yet still witnessed mild downward adjustments. The north-south raw material price gap narrowed compared with last month but remained tangible, driving adjustments to negotiated ex-factory prices for silica in different regions. After the general decline in raw material costs, conventional precipitated silica lost cost protection, prompting sellers to offer more discounts for shipments; meanwhile, fumed silica was barely affected by raw material fluctuations, with its prices mainly governed by supply and demand.

　　Production rates contracted on the supply side. Major enterprises adjusted output flexibly to evade risks, while small and medium manufacturers implemented substantial production cuts. Following a period of inventory buildup, the whole industry adopted a cautious production mindset, and the comprehensive domestic operating rate of silica retreated to 74%–79%. Large-scale leading enterprises abandoned full-capacity production blindly. They adjusted line loads flexibly in line with delivery schedules for long-term contracts, prioritizing output of high-end fumed silica and high-dispersity tire-specific precipitated silica while trimming production of generic industrial precipitated silica to optimize inventory structure and avert losses from falling prices of low-end products. Small and medium manufacturers faced mounting operational pressure. Already squeezed by thin profit margins, they were further plagued by cheaper raw materials and sluggish end-user purchases. Most drastically cut production hours, and some small factories suspended operations temporarily for maintenance, slowing the growth of low-grade silica supply. The launch of new capacity remained slow, with no large-scale projects coming online to disrupt the market, easing overall supply pressure. Product availability varied distinctly: ample early inventories kept generic precipitated silica well-stocked; continuous consumption depleted stocks of high-dispersity specialty precipitated silica and various grades of fumed silica to low levels, slightly extending delivery cycles; affected by international shipping schedules, imported premium fumed silica arrived in modest and stable volumes, maintaining a tight supply-demand balance. As of August 12, mainstream tax-inclusive nationwide quotations were as follows: general rubber-grade precipitated silica: 6,380–7,480 RMB per ton; mid-range domestic fumed silica: 19.8–23.5 RMB per kilogram; fumed silica dedicated to photovoltaics and electronic silicone rubber: 24.8–28.5 RMB per kilogram; imported high-purity fumed silica: 28.2–38.6 RMB per kilogram.

　　The polarization of domestic demand grew increasingly stark. Traditional rubber demand stayed depressed, while emerging new material sectors delivered enduring vitality. The tire industry remained the main drag on ordinary silica. Automobile consumption entered its summer lull amid sweltering heat, prompting vehicle manufacturers to slash production schedules. Tire companies were burdened by mounting finished goods inventories and cash flow strain, adopting an ultra-conservative purchasing strategy limited to short-term restocking for daily production needs, with bulk stockpiling virtually nonexistent and transactions scattered and sparse. Nevertheless, the upgrading toward green tires stayed on track. Steady progress in lightweight and low-carbon automotive requirements sustained long-term demand for high-dispersity silica as a replacement for carbon black, underpinning the floor price of premium precipitated grades.

Emerging new material sectors bucked the trend with robust growth: thriving mass production of epoxy-modified silicone oil, phenyl silicone rubber and transparent potting adhesives drove steady consumption of fumed silica, which is irreplaceable for reinforcement, anti-settling and temperature resistance. Continuous capacity expansion in the photovoltaic industry fueled rising demand for sealants and thermal conductive adhesives, keeping ultra-fine fumed silica consumption persistently high. The lithium battery sector expanded steadily, with year-on-year demand growth exceeding 44% for silica used in lithium battery separator coating, making it the fastest-growing subdivision. In addition, steady niche demand from printing inks, anti-corrosion industrial paints, food anti-caking agents, daily chemical powders and feed additives generated continuous scattered orders, offsetting the demand deficit caused by the downturn in traditional industries.

　　Overseas exports served as a crucial buffer against the domestic off-season, with rising overseas demand effectively digesting surplus domestic capacity. Purchasing frequency climbed recently among rubber processing plants in Southeast Asia, daily chemical and photovoltaic supporting projects in the Middle East, and high-end coating enterprises across Europe. Boasting prominent cost-performance advantages, Chinese silica saw sustained growth in overseas orders. Conventional precipitated silica posted the most notable export gains, absorbing substantial idle domestic capacity and preventing vicious price competition in the low-end market. Exports of mid-range fumed silica also rose steadily, driven by ongoing demand expansion from the overseas new energy industry, which further tightened domestic spot supplies. The mismatch between domestic and overseas demand prevented an across-the-board market downturn.

　　Industry institutions forecasted comprehensively that raw materials would remain weak in late August. Conventional precipitated silica would face mild downward pressure with flexible negotiation margins, while high-end fumed silica would maintain stable and firm prices amid persistent tight supply, backed by dual support from domestic emerging industries and overseas trade. Temperatures will drop in September, ushering in the traditional peak season for domestic tires, construction and coatings alongside a broad rebound in downstream purchasing. Coupled with sustained upbeat export orders, the entire silica market is expected to embark on a price recovery.

　　Anhui IOTA boasts a comprehensive organosilicon industrial chain layout. We supply precipitated silica of varying specific surface areas and a full spectrum of high-purity fumed silica products, widely applicable to tire rubber, silicone rubber goods, photovoltaic sealing, lithium battery separators, industrial coatings, daily chemicals and food sectors. Customized indicators, sample delivery, spot shipments for small and bulk orders are all available. We also provide professional technical services including filler ratio formulation, formula optimization and application process guidance, catering to procurement demands of domestic manufacturers and overseas export suppliers alike.