As late August 2026 arrives, China’s chemical‑material market remains in the traditional summer off‑season. High‑temperature weather, together with staggered‑production measures in some regions, has dragged down operating rates of many downstream factories, and overall market transaction activity falls short of expectations. Structural differentiation within the silica industry has further intensified. General‑purpose grades and high‑end modified products show vastly different market performances. Intertwined factors including upstream raw‑material fluctuations, enterprise production scheduling strategies, changes in end‑user demand and overseas trade policies jointly govern the current industry operation rhythm。

  In terms of upstream raw materials, production units of sodium silicate, the core feedstock for precipitated silica, operate steadily in major producing areas. Environmental‑protection inspections and periodic equipment maintenance take place in partial regions. Small‑and‑medium‑sized sodium‑silicate manufacturers voluntarily cut production loads, tightening spot supply and pushing quotations slightly upward, which builds a cost bottom for silica products. Sufficient sulfuric‑acid supply is available, yet weak demand from downstream fertilizer and metallurgy sectors keeps its price at a low level, partially offsetting cost pressure caused by sodium‑silicate price hikes. Industrial power consumption stays high in summer. Energy‑consumption costs become a non‑ignorable burden and further squeeze profit margins of ordinary silica grades. On the whole, raw‑material markets see no extreme sharp price surges or slumps. Raw‑material costs exert limited driving force over market trends, which are mainly determined by real downstream purchasing demand and product‑structure differences.

  On the supply side, the overall operating rate of domestic precipitated silica remains at 70‑75%. Leading large‑scale enterprises maintain stable plant operation, prioritize order delivery for long‑term clients and flexibly adjust output proportions of different grades. Faced with cut‑throat low‑price competition for general‑purpose products, numerous small‑and‑medium‑sized enterprises proactively reduce operating loads and cut production of ordinary rubber‑grade silica to avoid losses from low‑price shipments. The roll‑out of new production capacity slows down. Most new projects target high‑value‑added varieties such as high‑dispersion and surface‑modified grades instead of blindly expanding bulk general‑purpose capacity, so they will not generate supply shocks to spot markets in the short run. Inventory polarization is prominent. General‑purpose grades for tires and common rubber filling sit at medium‑to‑high inventory levels, bringing certain de‑stocking pressure to manufacturers. By contrast, modified high‑dispersion grades for new‑energy green tires, silicone rubber, photovoltaic sealants and electronic auxiliary materials are in tight supply. Orders of multiple manufacturers have been scheduled till early September, with scarce spot goods circulating in the market. Similar differentiation occurs in fumed silica markets. Ordinary hydrophilic grades face fierce competition with sideways prices, while high‑end grades dedicated to electronics and photovoltaic adhesives stay in short supply constrained by monomer feedstock.

  Downstream application sectors show sharp contrasts in performance. As the largest downstream consumer of silica, domestic tire enterprises keep operating rates at 75‑80% and mostly adopt a purchase‑on‑demand strategy without large‑scale stockpiling. The traditional replacement‑tire market enters the off‑season with limited demand release. Nevertheless, green tires supporting new‑energy vehicles maintain steady growth and continuously fuel demand for high‑dispersion silica, forming the major growth driver of the tire track with stable premium for relevant products. Silicone rubber and sealant industries deliver strong resilience. Along with continuous expansion of China’s new‑silicone‑material industry, procurement volume of reinforcing silica rises steadily, acting as the core driving force for special‑grade demand. In comparison, driven by off‑season impacts, downstream buyers in coatings, feed additives and daily‑chemical sectors show weak purchasing willingness and slow down procurement rhythms. Feed and toothpaste‑abrasive segments are dominated by long‑term contracts with stable overall orders and limited new demand.

  Foreign‑trade exports remain robust. Overseas markets keep rising demand for low‑carbon and high‑function modified silica. Amid concentrated maintenance of large overseas chemical plants and supply‑chain restructuring, substantial orders keep flowing to domestic leading enterprises with stable quality and low‑carbon production capacity. Continuously implemented overseas carbon‑border trade policies push domestic enterprises to carry out green‑process transformations including wastewater recycling and by‑product resource utilization. The former export mode featuring low‑price high‑volume sales faces mounting pressure. Products with low‑carbon certifications gain rising competitive advantages in overseas markets. Export competition has shifted from mere price rivalry to comprehensive competition covering quality, carbon footprint and customized services.

  In terms of corporate profitability, profits of general‑purpose grades are continuously squeezed by market involution. Many small‑and‑medium‑sized enterprises hover near the break‑even point. Benefiting from technical barriers and tight supply, high‑end modified products deliver favorable profitability, widening profit gaps among industry participants. More and more enterprises adjust product portfolios, lower the proportion of low‑value‑added general‑purpose products, increase R&D investment and develop special products for new‑energy and electronic‑material supporting applications, accelerating industrial upgrading.

  Looking ahead, quotations for general‑purpose silica grades will maintain a weak‑stable trend in the short term. Price hikes lack support from demand recovery, while raw‑material and energy‑consumption costs set a floor against sharp declines, making drastic price swings unlikely. Backed by demand from new‑energy, high‑end rubber and silicone tracks, high‑end modified special grades will keep firm market sentiment, and some tight‑supply grades still have premium space. With the arrival of the traditional peak season in September, tire, rubber‑goods and sealant manufacturers are expected to resume full‑scale production, bringing expectations for downstream purchasing recovery. Future market focus will lie on actual downstream resumption results, sustainability of export orders and release rhythm of new special‑grade capacity. In the long run, the era of simple capacity‑scale competition for silica has come to an end. Production processes, customized development capabilities and green‑manufacturing standards will become core enterprise competitiveness, and structural differentiation within the industry will keep deepening.