In late August 2026, the domestic chemical market generally maintains stable operation in the traditional summer off-season. Sustained high temperatures slow the overall operating pace of downstream manufacturing sectors, reducing their willingness for bulk pre-stocking. Price fluctuations of chemical raw materials narrow, and the whole market stays largely stable with partial minor adjustments. Against this backdrop, the silica industry has completely moved away from the historical pattern of synchronized price movements. Structural differentiation, product reshuffling and a clear divide between high-end and low-end markets have become the core features of the current market. Conventional precipitated silica continues to face three major pressures: overcapacity, sluggish demand and shrinking profit margins, leading to thin trading and persistently depressed prices. By contrast, modified functional silica, high-dispersion tire-specific silica and high-purity fumed silica sustain solid market demand supported by industrial upgrading of high-end downstream sectors, iterative updates of end products and incremental export orders. Supply remains relatively tight for these premium grades, further consolidating the differentiated development landscape across the industry.

　　On the supply side, sufficient overall silica capacity is available nationwide. Production facilities across major domestic manufacturing bases run steadily, and all units previously shut down for maintenance, production restriction or technical renovation have resumed normal operation, ensuring ample basic commodity supply. Nevertheless, structural contradictions within the industry grow increasingly prominent. Low-end general-purpose products suffer from persistent overcapacity and high inventory levels, with slow shipments among traders. Most manufacturers adopt low-price sales strategies to balance production and sales, which further compresses overall industrial profit margins. Small and medium-sized producers focused on low-end grades face mounting operational pressure, and the phase-out of backward capacity speeds up continuously. For high-end functional silica, complex production procedures, high technical barriers for modification and strong customization requirements limit the release of effective incremental capacity. Leading manufacturers operate dedicated high-end lines at full capacity with tight order backlogs, resulting in obvious spot shortages and consistently low inventory. Suppliers hold firm quotations with almost no room for price concessions, forming a sound market pattern marked by robust demand, tight supply and stable pricing for premium silica grades.

　　In terms of cost factors, prices of domestic feedstocks including sodium silicate, sulfuric acid, additives and energy resources remain stable recently without notable ups and downs. Overall production costs of silica fluctuate mildly and exert limited influence over market trends. Competition logic in the industry has fully shifted away from cost-driven pricing toward comprehensive competition centered on product performance, modification technology, batch stability, low-carbon indicators and customized services. Large enterprises equipped with advanced modification processes, low-carbon production systems and rigorous quality control systems can steadily manufacture high-dispersion, low-impurity and highly stable premium products, securing a dominant position in high-end markets such as premium tires, new energy materials and high-grade coatings. Small and medium-sized manufacturers with outdated processes, single product portfolios and unstable quality are trapped in fierce low-end competition, facing shrinking profit margins and declining market share.

　　Downstream demand presents a clear pattern of stable performance in traditional off-season sectors and sustained growth in high-end segments. Traditional application fields such as ordinary rubber goods, general coatings, filling auxiliaries and basic daily chemical fillers suffer from flat end orders and low operating rates. Buyers mostly place small replenishment orders and purchase only as needed, failing to drive overall market growth. On the contrary, high-end downstream tracks maintain buoyant demand and serve as the core pillar supporting the silica sector. The tire industry keeps advancing green and low-carbon upgrades. Major domestic tire enterprises continuously optimize formulations and significantly raise the proportion of high-dispersion modified silica added to reduce tire rolling resistance, improve wear resistance and enhance rubber reinforcement performance, bringing steady growth in rigid demand for tire-grade premium silica. Meanwhile, expanding emerging sectors including new energy battery separators, photovoltaic adhesives, silicone elastomers, electronic sealing materials, high-grade matte coatings and medical fillers push up demand for ultra-fine, high-transparency, low-heavy-metal and high-dispersion fumed silica, continuously unlocking new growth space for high-end silica products.

　　The foreign trade export structure keeps optimizing and has become an important growth driver for premium silica this year. As carbon tariffs, environmental regulations and product access standards worldwide continue to tighten, the export competitiveness of domestic low-end silica weakens, and the model of low-price exports is gradually phased out. Domestic high-end modified silica, functional hydrophobic silica and high-purity fumed silica have gained wide recognition across Europe, America, Southeast Asia and the Middle East by virtue of stable performance, high cost performance and low-carbon production advantages. Overseas inquiries and orders keep rising. The return of high-end overseas orders effectively diverts domestic premium supplies, further stabilizes the pricing system for high-end products in China and accelerates industrial transformation toward high added value, functionalization and customization.

　　Industry forecasts indicate that the divergent market pattern featuring weak fluctuations for low-end products and firm upward momentum for high-end grades will persist at the end of August. As the traditional peak stocking season “Golden September” approaches, downstream manufacturers in tire, coating, rubber and new energy industries will gradually launch advance stockpiling, bringing expectations of periodic price increases for high-end functional silica. Low-end general-purpose products, restrained by overcapacity, have limited room for market recovery. Future competition in the silica industry will no longer focus on capacity expansion, but on comprehensive strengths including technological iteration, product upgrading, formulation adaptation and low-carbon quality control.

　　Overall, the silica industry is in a critical phase of shifting growth drivers. Backward low-end capacity continues to exit the market while high-end tracks keep expanding. Product structure upgrading, fine modification and customized services will remain the long-term development theme of the sector, and the high-quality transformation of the industry is an irreversible trend.