In late August, the domestic chemical market remains in the traditional summer off-season. Sustained high temperatures restrict full-capacity production and bulk restocking of midstream and downstream manufacturers. Trading sentiment for bulk chemical commodities stays cautious, with overall transaction volumes at a low level. The silica industry continues to see a sharply polarized structural market. Low-end general products fluctuate weakly with mounting inventory pressure, while high-end modified, tire-specific and fumed silica maintain firm demand and strong price resistance. The differentiated structural trend becomes increasingly entrenched. As of August 18, the benchmark quotation of domestic silica stood at 6000 CNY per ton, up slightly by 1.12% from 5933.33 CNY per ton in early August. The average price remains at the medium-high range over the past three months, reflecting a stable yet differentiated fundamental landscape.

　　From the supply side, major domestic silica producers maintain moderate-to-high operating rates, with sufficient overall industrial capacity supply. In early August, manufacturers across multiple regions completed annual routine maintenance, equipment upgrades and environmental rectification. Idled facilities have gradually resumed full production in mid-August, lifting the overall supply of goods in circulation. However, substantial divergence exists across product grades. Capacity of ordinary precipitated industrial silica is fully released, yet downstream demand fails to follow up. Social inventory keeps accumulating, especially among small and medium-sized manufacturers facing notable stockpiles. To accelerate shipments and ease capital pressure, suppliers widely adopt flexible pricing and profit-concession strategies. Price competition intensifies in the low-end segment, leaving little room for price hikes and sustaining narrow weak fluctuations.

　　In stark contrast, high-dispersion tire-grade modified silica and ultra-fine high-purity fumed silica remain in tight supply. Leading producers run dedicated high-end production lines at full capacity, supported by long-term fixed orders from tire and new material clients. Surplus spot goods are rarely available on the market, and finished product inventories stay low. Quotations hold steady, with lead times for certain high-end modified grades extending to 7–15 days. Raw materials including sodium silicate and sulfuric acid see mild price movements, offering no clear upward or downward cost drivers. Profit margins continue to shrink, dampening SMEs’ willingness to expand high-end output. The slow rollout of new high-end capacity further underpins the tight supply-demand balance for premium silica grades.

　　On the demand side, the segmentation of the silica market hinges entirely on downstream application sectors. Traditional fields such as ordinary rubber parts, general industrial coatings, feed additives and cosmetic fillers are deep in the seasonal slowdown. End product manufacturers face insufficient orders and low operating rates. Buyers stick to conservative sporadic restocking instead of bulk procurement, providing limited support for consumption of standard industrial silica, which is the core drag on low-end market performance.

　　The key pillar sustaining overall market resilience lies in rigid demand driven by continuous upgrades in the green tire sector. In mid-to-late August, domestic logistics, infrastructure and automobile consumption gradually recover, lifting operating rates at major tire factories. Guided by national energy-saving and low-carbon policies, the share of low rolling resistance, high wear-resistant eco-friendly green tires keeps rising. As a core functional filler that cuts tire rolling resistance, boosts wear resistance and reinforces rubber, high-dispersion modified silica sees steady growth in inquiries and transaction volumes for tire-specific grades.

　　Meanwhile, emerging high-end sectors continue to underpin premium silica demand. Ultra-fine, low-impurity, high-clarity fumed silica maintains stable consumption in new energy battery separators, premium silicone rubber, electronic potting compounds, photovoltaic encapsulants, dental materials and high-grade inks & coatings. The domestic substitution trend for high-end silica accelerates and broadens market space. For exports, purchasing inquiries from Southeast Asia, the Middle East, Europe and America have picked up recently. Overseas demand for high-performance modified and hydrophobic silica diverts domestic premium supplies and eases inventory pressure, serving as a key external support for firm high-end pricing.

　　In terms of industrial competition and long-term trends, the silica sector has moved past the era of synchronized price swings across all grades. Structural divergence will remain a lasting theme. Low-end general precipitated silica suffers from severe overcapacity and sluggish demand. Without meaningful positive catalysts, prices will likely stay range-bound and weak in the short run, with limited upside potential. In comparison, high-value products including high-dispersion tire-modified silica, fumed silica and functional hydrophobic silica enjoy strong demand resilience and price support, benefiting from green tires, new energy and advanced materials. These premium grades command sustained market premiums.

　　Industry analysts forecast that the domestic silica market will continue its split pattern of weak low-end pricing and firm high-end pricing from late August to early September. As the traditional peak season “Golden September” approaches, restocking demand from tire, coating and rubber sectors is expected to pick up, creating upside potential for high-end functional silica. Downstream buyers are advised to adopt phased small-batch restocking and buy on dips to lock in supplies and avoid seasonal price hikes. Manufacturers should phase out low-efficiency low-end capacity, focus on R&D and production of modified functional silica, optimize product portfolios to escape homogeneous low-end competition, and deepen cooperation with high-end downstream sectors to achieve stable profitability and industrial upgrading.