In mid‑August, the domestic chemical market remains in the traditional demand off‑season. Overall trading activity in the silica sector stays muted without sharp price swings, while structural gaps within the industry keep widening. Restrained by insufficient downstream operating rates, ordinary precipitated silica trades at a weak‑to‑stable level. By contrast, high‑dispersion and fumed silica for new‑energy, high‑end rubber and export segments hold firm on firm rigid‑order support. Price gaps between high‑end and low‑end products keep expanding, highlighting the market pattern of “weak standard grades, strong premium grades”.

　　In terms of actual transactions, market polarization is fully reflected in real‑world deals. Sufficient spot supplies are available for general‑industrial‑grade precipitated silica. Downstream buyers only make small on‑demand restocks, and negotiation room expands in spot trades. Some small‑and‑medium manufacturers offer price concessions to secure shipments. For fumed silica and tire‑specific high‑dispersion grades, most buyers are long‑term contracted clients with extended order lead‑times and limited spot goods. Production is largely order‑driven with little room for price cuts. Although overall listed prices remain stable, actual transaction prices vary greatly across grades and quality levels. General benchmark quotations can no longer truly reflect real‑market conditions.

　　On the supply side, manufacturers follow the production strategy of “controlling low‑end output while guaranteeing high‑end supply”. Most large‑scale producers moderately cut operating rates for ordinary precipitated silica to ease inventory pressure and avoid vicious low‑price competition. Meanwhile, production lines for high‑value‑added fumed silica and tire‑grade silica run at high loads, prioritizing deliveries for overseas orders and major domestic downstream customers. After completing scheduled maintenance, many enterprises shift capacity toward high‑margin products and restrain output of standard‑grade silica. Constrained by capital shortages, thin order books and environmental regulations, numerous small‑and‑medium‑sized plants maintain low operating rates. Disordered low‑price supplies shrink, and industrial elimination of backward capacity continues.

　　Cost support diverges across product lines. Key feedstocks for precipitated silica including sodium silicate and sulfuric acid see narrow price fluctuations and fail to deliver strong cost‑driving momentum. Corporate profits rely heavily on plant efficiency and scale benefits. Energy cost remains a major profit‑shaping factor. Regional gaps in electricity and steam costs further widen production‑cost disparities among manufacturers. Upstream silicone monomer prices hover at high levels, forming solid cost floor for fumed silica and limiting downside risks for premium grades. At present, cost is no longer the core market driver; downstream order mix dominates manufacturers’ pricing decisions.

　　Disparate downstream demand continues to prevail. In traditional sectors such as general rubber goods, shoe materials, conventional coatings and plastic filling, end‑market consumption stays sluggish. Factories operate at moderate rates and adopt conservative purchasing strategies by consuming existing stock instead of active restocking, which suppresses demand for ordinary silica. The green‑tire sector fares relatively well. Domestic tire producers keep upgrading formulations and raising the proportion of high‑dispersion silica. Coupled with stable tire export orders, consumption of high‑grade precipitated silica remains steady. New‑growth tracks including silicone rubber, photovoltaic auxiliary materials, electronic potting compounds and composite materials expand steadily and lift procurement volume of fumed silica, acting as critical incremental markets for premium silica products. Overseas demand stays robust, and export orders effectively offset pressure from domestic traditional‑industry off‑season.

　　Inventory structure also shows obvious polarization. Social inventory of ordinary precipitated silica sits at relatively high levels, leaving many manufacturers under destocking pressure. High‑end fumed silica and tire‑grade silica are produced‑to‑order with low overall inventory and barely any surplus spot goods entering circulation. Traders stay prudent and adopt hand‑to‑mouth purchasing to avoid price‑volatility risks. The circulation sector loses its buffer function. Once downstream buyers ramp up restocking, tight‑supply grades may face temporary supply shortages.

　　Looking ahead, late August remains the tail‑end of the off‑season, and conditions for an overall market rally are not yet ready. Structural differentiation will persist. Without meaningful recovery in traditional downstream demand, ordinary precipitated silica faces obstacles to price hikes and will likely fluctuate within a narrow range. Supported by exports and new‑industry consumption, fumed silica and high‑dispersion tire‑grade silica will maintain strong price resilience. Market participants are waiting for the realization of the “Golden September & Silver October” peak season. If operating rates of rubber, tire and coating industries rise notably in September, ordinary silica may witness price recovery. If downstream recovery falls short of expectations, the current divided market landscape will continue.

　　Industry suggestions: Producers should strengthen inventory management and rationally allocate capacity for different grades. Downstream purchasers need to track downstream operating‑rate changes closely. Buy standard‑grade materials on demand, and lock production schedules in advance for tight‑supply high‑end grades to prevent prolonged delivery cycles. Traders should refrain from aggressive speculative bets, stick to fast‑turnover operations and treat peak‑season expectations rationally. Focus on three core indicators: tire operating rates, raw‑material price swings and export‑order performance.