Entering September 2026, China’s new‑chemical‑material sector has entered the repair cycle of the traditional peak season. The operating sentiment of downstream manufacturing industries is picking up, and market expectations for the “Golden September” rally are gradually rising. Nevertheless, judging from the overall performance of precipitated silica, the industry has not witnessed the typical peak‑season recovery featuring rising volume and prices. It presents a structural divergence pattern characterized by loosening cost support, sluggish demand for low‑end grades and resilient demand for high‑end products. With continuous capacity release across the industry, the loose supply‑demand landscape for general‑purpose products has taken root for a long time. Raw‑material fluctuations exert a diminishing impact on market trends. The sector has bid farewell to the old cycle driven by cost swings and stepped into a new development phase where technologies determine pricing, quality defines markets and modification generates profits. At present, overcapacity plagues the low‑end segment, and competition among homogeneous products turns white‑hot. Profit margins for standard precipitated silica keep shrinking, and the whole industry operates on slim earnings.

　　In terms of upstream raw‑material trends, core feedstock such as soda ash, quartz sand and industrial sulfuric acid run moderately weaker recently at the low‑price range for this year. The cost of supporting energy resources including coal, steam and electricity fluctuates steadily without obvious upward pressure, bringing down the comprehensive production cost for manufacturers. However, lower costs have not effectively improved industrial profitability. The fundamental reason lies in the saturated supply of general‑grade precipitated silica and high social inventories. Downstream purchasers enjoy abundant material sources and remain highly cautious in procurement. Low‑cost goods keep circulating on the market, and price comparison and bargaining among traders prevail. Cost dividends brought by cheaper raw materials are almost entirely offset by fierce market competition. Conventional industrial‑grade precipitated silica lacks upward momentum, and corporate earnings stay at a low level.

　　Demand recovery in traditional downstream application sectors remains tepid, failing to fuel a broad‑based market upturn. Tire producers carry out autumn stock‑up in an orderly manner, yet the recovery of domestic end‑vehicle consumption proceeds slowly, and the overall demand growth in the auto‑parts chain is limited. In addition, overseas tire export orders lack stability. Tire manufacturers stay prudent in operation and adopt a purchasing strategy of small‑batch, high‑frequency and on‑demand replenishment instead of large‑scale stockpiling, delivering relatively weak pulling power for traditional rubber‑reinforcing precipitated silica. Meanwhile, demand in mature downstream fields such as ordinary silicone rubber, construction sealants, general coatings, daily‑use chemical additives and rubber‑plastic products remains flat and saturated. Finished downstream goods are shipped at a moderate pace with narrow incremental room. Traditional tracks can no longer provide price‑rising momentum for general‑grade precipitated silica, and the low‑end market keeps fluctuating weakly in the long run.

　　Against the backdrop of a dull overall market, high‑end modified precipitated silica registers an independent upward trend relying on superior product performance and precise track adaptation, serving as the core profit pillar of the industry. In recent years, emerging industries including new‑energy lithium batteries, photovoltaics, high‑end anti‑corrosion coatings, precision electronics, biomedicine and composite materials have expanded rapidly in China. End‑products keep upgrading and iteration, imposing extremely high customized requirements on precipitated silica in terms of dispersibility, purity, weather resistance, hydrophobicity and compatibility. Specialty precipitated silica treated with professional surface modification processes makes up for the defects of ordinary grades such as particle agglomeration, poor compatibility and single functionality. It can be precisely applied to high‑end fields such as lithium‑battery separators, photovoltaic sealants, electronic potting materials, premium matting coatings, pharmaceutical and food additives, as well as high‑temperature‑resistant composite materials. These high‑end modified products boast high technical barriers, strong customization attributes and limited competitors. Insulated from low‑end price wars, they enjoy sufficient order backlogs and a stable pricing system with prominent profit advantages, becoming a core track for leading enterprises to secure profits.

　　The export market structure keeps optimizing and iterating, and the profit gap between high‑end and low‑end export products continues to widen. Affected by newly commissioned overseas local capacity, international trade barriers and low‑cost foreign competitors, low‑end general‑purpose precipitated silica faces sluggish overseas inquiries and stagnant order growth, leaving exports under persistent pressure. By contrast, high‑purity, high‑dispersity and functionally modified precipitated silica gains continuous recognition from premium overseas markets in Europe, Southeast Asia, the Middle East and Latin America with stable batch quality, excellent performance and complete compliance certifications. Long‑term cooperative export orders grow steadily and the proportion of overseas revenue keeps climbing. Meanwhile, overseas buyers set stricter standards for product quality traceability, low‑carbon production processes and environmental safety, pushing domestic enterprises to accelerate technological upgrading, phase out extensive backward capacity and continuously optimize the export system for high‑end products.

　　Tighter environmental protection and energy‑consumption controls drive sustained optimization of the industrial supply structure. Chemical parks nationwide enforce strict standards for wastewater, waste gas and solid‑waste discharge as well as energy management. Outdated production lines with high energy consumption, heavy pollution and obsolete techniques are gradually rectified, production‑restricted or phased out, accelerating the exit of inefficient backward capacity. Leading enterprises with independent R&D capabilities, modified production technologies and green manufacturing workflows keep optimizing production procedures, cutting unit consumption, improving product stability and developing new customized modified products to accurately meet differentiated demands in high‑end markets. Their market competitiveness keeps improving. Capacity, orders and profits are rapidly concentrating among high‑quality leading manufacturers, lifting industrial concentration steadily.

　　Judging from the supply‑demand balance, cost trends, policies and downstream track performance, the structural divergence of the precipitated silica market will persist in the short term. Restrained by overcapacity, high inventories and sluggish demand, conventional precipitated silica fluctuates weakly with limited upward momentum and squeezed profit margins. Supported by long‑term rigid demand from high‑end new‑energy and new‑material sectors, high‑end functionally modified precipitated silica maintains firm prices, sufficient orders and stable profits. In the medium‑to‑long run, the precipitated silica industry will completely break away from extensive capacity competition. Future competition will focus on technological R&D, product modification, customized services and eco‑friendly manufacturing. As industrial reshuffling deepens and backward capacity exits at a faster pace, high‑end refined, functional and customized products will dominate industrial development, driving China’s precipitated silica sector toward a new stage of high‑quality and high‑value‑added growth.