Entering August 2026, China’s chemical new‑materials sector has stepped into the traditional demand off‑season. The precipitated silica market operates generally steadily with limited price swings, and structural divergence within the industry has further widened. The era of reaping profits merely through capacity expansion has come to an end. Homogenized general‑purpose products are trapped in price‑driven cut‑throat competition with continuously squeezed profit margins. In contrast, functional grades for new‑energy tires, lithium‑ion battery materials and high‑end silicone products stand out for strong anti‑cyclical performance and represent one of the few growth segments in the industry. Market competition is no longer a simple contest of output scale. Modification technology, low‑carbon production capacity and batch‑to‑batch consistency have become core competitive advantages for enterprises, accelerating industrial structural adjustment.

　　　Mixed bullish and bearish factors emerge on the upstream raw‑material side, and cost pressure transmits to manufacturers. As the core feedstock for precipitated silica, sodium silicate sees tightened regional supply due to environmental inspections and unit load‑reduction or maintenance across multiple regions, bringing modest increases in market quotations and directly lifting production costs. Sulfuric acid remains in sufficient supply. Falling operating rates in downstream metallurgical and chemical industries result in weak purchasing demand and sliding prices, which partially offset cost pressures caused by higher sodium silicate prices. Driven by these dual factors, profit divergence among manufacturers becomes obvious. Producers of ordinary filler‑grade precipitated silica hover near break‑even with slim profits. Enterprises equipped with modification processes can absorb raw‑material price volatility and maintain relatively sound profits by virtue of high‑value‑added product premium.

　　　Capacity structure keeps optimizing on the supply side, while backward and inefficient capacity is gradually phased out. At present, the overall operating rate of domestic precipitated silica stays within 70%‑74%. Leading large‑scale manufacturers hold sufficient order backlogs and keep stable production, arranging production flexibly according to customer orders and maintaining sound balance between output, sales and inventory. Troubled by insufficient orders and severe product homogenization, small‑and‑medium manufacturers adopt flexible production rhythms and frequently cut output intermittently subject to market conditions. New capacity projects are fully shifted toward high‑end tracks. High‑dispersion tire‑specific grades, surface‑modified products and low‑impurity special grades dominate new investment, while almost no new capacity is added for conventional precipitated silica. Inventory polarization remains prominent. Stocks of precipitated silica for general rubber and coatings build up with slow destocking. Special new‑energy‑supporting grades are in tight supply, some specifications feature extended delivery cycles and obvious spot premium.

　　　Downstream segments show divergent performance, and new‑energy sectors serve as core demand drivers. Tire manufacturing remains the largest consumption field for precipitated silica. Domestic tire plants maintain moderate operating rates. Hit by the off‑season, finished‑goods shipments slow down. Downstream factories adopt on‑demand procurement without large‑scale restocking, delivering limited stimulus to general‑purpose precipitated silica. Steadily rising penetration of new‑energy vehicles fuels expanding market for energy‑saving green tires. Higher dosage of high‑dispersion precipitated silica in tire formulations effectively boosts demand for high‑end grades. The silicone industry stays fairly prosperous. Iterative upgrading of silicone rubber and sealants steadily lifts procurement for reinforcing fumed silica and modified precipitated silica. Nevertheless, traditional markets including ordinary rubber articles, low‑end coatings and general plastic fillers lack recovery momentum. Downstream consumers prioritize depleting existing inventory with limited new orders, further weighing on demand for commodity‑grade products.

　　　Export markets face regulatory shifts, and green low‑carbon standards turn into hard thresholds for overseas business. As EU carbon‑related policies keep being implemented, overseas buyers raise stricter requirements on carbon footprint and environmental qualifications for chemical raw materials. Export barriers increase for high‑energy‑consumption ordinary precipitated silica with shrinking overseas orders. Modified special precipitated silica manufactured with low‑carbon production lines and complete carbon‑footprint certification gains wide recognition from foreign clients for stable quality and green performance, enjoying ample orders and premium benefits. Continuous capacity expansion of rubber‑plastic and tire industries in Southeast Asia and the Middle East creates important incremental export markets for Chinese products. Overseas purchasing logic has transformed. Instead of pursuing low prices alone, buyers attach greater importance to batch consistency, application adaptability and supporting technical services, pushing domestic enterprises to accelerate product upgrading. Certain high‑end precipitated silica for pharmaceutical, food‑contact and optical‑coating applications still depends on imports, leaving considerable opportunities for domestic substitution in niche tracks.

　　　Looking ahead, the off‑season pattern will not reverse rapidly in the short run. General‑purpose precipitated silica lacks upward price momentum and is expected to fluctuate within a range. Market games focus on raw‑material cost changes and inventory digestion speed. In the medium‑to‑long term, fierce competition is concentrated on low‑end general‑purpose segments with further shrinking profit margins. Special precipitated silica such as high‑dispersion tire grades, lithium‑battery‑separator grades, photovoltaic‑sealing grades and pharmaceutical‑food‑contact grades fits development trends of new‑energy and high‑end manufacturing sectors and boasts broad growth prospects. Carbon‑footprint certification and low‑carbon manufacturing systems will gradually become essential prerequisites for competing in high‑end overseas markets. Leading enterprises with core modification technologies, intelligent low‑carbon production lines, complete quality control and customized‑service capabilities will capture larger market share. The whole industry will keep transforming toward high‑quality, differentiated and green development.