In mid‑to‑late September 2026, China’s precipitated silica sector stepped into the critical window of the traditional “Golden September” sales season. Nevertheless, the market did not witness a broad‑based price rebound as seen in previous years. Instead, a distinct structural divergence emerged, with low‑end conventional grades moving in a totally different direction from high‑performance functional products. The industry is steadily shifting toward high‑end refinement and differentiated development. At present, domestic production capacity continues to expand, and newly‑added capacities are being released successively, resulting in structural overcapacity and fiercer competition. The sector has bid farewell to the old cyclical pattern of synchronized price fluctuations.

　　Upstream raw material costs keep easing, relieving cost pressure for manufacturers. Core feedstock including quartz sand, soda ash and sulfuric acid have seen moderate price declines with sufficient circulating supply. Meanwhile, the prices of coal, power and other production utilities remain stable at a low level, greatly lowering the production cost of precipitated silica. Suffering from overcapacity and high inventory levels, most small‑and‑medium producers adopt the strategy of discount sales to release stock and recover capital. Cheap bulk supplies keep flooding the market, putting continuous downward pressure on conventional precipitated silica prices. Profit margins for ordinary‑grade manufacturers are squeezed amid sluggish market conditions.

　　Downstream demand presents a clear two‑tier structure. Recovery in traditional downstream sectors stays tepid, while emerging high‑end demand remains resilient. The tire industry, a major consumer, has started its autumn restocking cycle. Leading tire factories have slightly lifted their operating rates compared with August. However, the recovery of vehicle and auto parts end‑market is slow with insufficient terminal orders. Tire purchasers remain highly cautious, only placing sporadic small‑batch replenishment orders rather than large‑scale stockpiling. This delivers limited driving force for rubber‑reinforcing precipitated silica. Other traditional downstream segments such as rubber goods, ordinary silicone rubber and daily‑use additives maintain weak consumption, further slowing inventory turnover for standard‑grade products.

　　By contrast, high‑end functional precipitated silica enjoys thriving demand and acts as a core growth driver of the whole industry. Specialty high‑dispersity silica and fumed silica applied in lithium‑battery electrolyte, separator coating, premium silicone rubber, electronic‑grade silicone products, matting agents for high‑end coatings, toothpaste additives as well as food‑and‑pharmaceutical materials feature high technical barriers. New‑energy and advanced‑material clients place steady orders, and manufacturers operate on backlog delivery schedules with strong pricing power. Shielded from the price war in the low‑end market, these premium products maintain firm prices and deliver far higher gross profit than standard grades, becoming the key profit source for market leaders and widening the gap between high‑end and low‑end businesses.

　　The export market is gradually recovering with an optimized export mix. Overseas purchasing interest from Southeast Asia, Europe and the Middle East for low‑impurity, high‑dispersity silica keeps rising. Domestic leading manufacturers with reliable quality and complete export certifications achieve notable growth in overseas shipments. On the contrary, low‑cost ordinary silica faces fierce domestic homogenized competition as well as trade barriers and local production competition abroad. Its export resistance rises sharply, and overseas market share continues to shrink.
　　Environmental inspections are carried out in multiple chemical industrial zones across China. A number of small production lines are forced to cut operating loads temporarily, restricting short‑term supply and preventing a sharp price collapse of conventional silica. Major enterprises keep stable operation with high overall supply volume, so large‑scale material shortage will not occur. Regulatory focus has shifted from simple production limits to low‑carbon transformation and waste emission control, pushing small manufacturers to upgrade their production processes.

　　Looking ahead, the domestic market will continue to operate in a divergent pattern in the short run. Burdened by excess inventory and surplus capacity, standard precipitated silica has limited upside potential and will stay range‑bound at a weak stable level. Supported by long‑term demand from new‑energy and high‑material industries, premium specialty silica will sustain firm prices. In the long term, industrial competition has evolved from price fighting to R&D capacity, customized formulation services and eco‑friendly manufacturing. Enterprises with mature R&D systems will gain sustained competitive edges. Industrial reshuffling speeds up, and production resources will gradually concentrate on qualified leading manufacturers.