In mid‑September 2026, the import‑substitution momentum of China’s silica industry keeps gathering pace, with increasingly obvious market differentiation. The market is oversupplied with conventional filler‑grade precipitated silica, whose transaction prices remain under long‑term pressure with thin industrial profits. By contrast, high‑end products such as high‑dispersibility tire‑grade silica, hydrophobic fumed silica and high‑purity silica for electronics and batteries are breaking away from historical import dependence. Domestic grades have won recognition from leading downstream clients thanks to consistent quality, with expanding orders and high profit margins. Prices of upstream raw materials including water glass, soda ash and sulfuric acid stay stable. Cost is no longer the decisive factor for high‑end product pricing, while competitiveness mainly relies on modification technology, batch‑to‑batch consistency and supporting technical services.

　　On the supply side, China boasts a massive overall capacity of precipitated silica. A large number of small‑and‑medium manufacturers focus on low‑end homogeneous products, leading to sufficient supply and slow inventory digestion alongside widespread low‑price competition. Leading domestic enterprises keep investing in technical renovation and new projects for high‑end specialty silica to expand capacity of high‑value‑added products. Restrained by carbon‑neutrality and environmental policies, outdated production lines with high energy consumption and poor pollution control operate at limited loads, and backward low‑end capacity exits the market in an orderly manner. Breakthroughs are particularly remarkable in the fumed silica segment. Multiple domestic production units adopting new processes have been successfully commissioned. Key product indicators are continuously benchmarked against world‑class brands, gradually ending the long‑term monopoly of overseas suppliers and substantially improving the independent supply capacity of domestic high‑end materials.

　　Booming downstream high‑growth sectors fuel sustained demand growth for premium silica. The rapid expansion of the new‑energy vehicle industry boosts demand for low‑rolling‑resistance green tires. Automakers raise stricter standards for tire wear resistance, energy efficiency and noise reduction, lifting the formulation demand for high‑dispersibility modified silica. Emerging industries such as photovoltaic sealants, energy‑storage equipment, lithium‑battery separator coatings and thermally conductive fillers develop at high speed, imposing strict requirements on silica purity, impurity content and surface modification effect. Such materials used to rely heavily on imports, yet domestic grades are now delivered in bulk. High‑purity compliant silica for personal care, food anti‑caking agents and pharmaceutical excipients also embraces an import‑substitution window, where domestic manufacturers with complete certification credentials stand out. Traditional rubber and construction adhesive markets maintain rigid demand, while demand for ordinary silica grows sluggishly amid fierce competition.

　　The export landscape witnesses fresh changes. On one hand, overseas high‑end markets impose increasingly rigorous audits on carbon footprint, product traceability and green manufacturing qualifications. On the other hand, cost‑effective and stable domestic premium silica gradually gains export access to Europe, Southeast Asia and North America. Mid‑to‑low‑end silica faces impacts from newly launched capacity in Southeast Asia with shrinking export profits, whereas export volumes of high‑end modified silica keep climbing and become a new profit driver for local manufacturers. Instead of competing merely on price, domestic suppliers provide value‑added services including formulation adjustment and on‑site technical support to strengthen overseas customer loyalty and raise the influence of Chinese materials within global supply chains.

　　Technological R&D serves as the core driving force for import substitution. Domestic enterprises keep tackling key processes such as in‑situ surface modification, continuous synthesis and high‑purity refining, optimizing core parameters of silica including specific surface area, oil absorption value and dispersibility. Many manufacturers build professional application laboratories to develop customized exclusive grades for clients from tire, silicone and new‑energy battery industries, transforming from raw‑material producers into material‑solution providers. Green technologies that produce silica from rice‑husk ash, industrial silicon slag and other solid waste are continuously commercialized. Such processes reduce production costs and satisfy overseas low‑carbon certification standards, further lifting the international competitiveness of domestic products. Strict full‑process quality control guarantees consistent performance across batches to meet stable‑supply requirements of high‑end manufacturers.

　　The industrial competitive landscape is being reshaped. The era of extensive capacity expansion and low‑price rivalry has come to an end. Future market competition will be concentrated in high‑end specialty segments. Leading enterprises with independent R&D capabilities, integrated industrial‑chain layouts and compliant production qualifications will sustain their advantages. Small‑and‑medium‑sized manufacturers lacking technical accumulation and diversified product portfolios face mounting operational pressure. Market competition accelerates the survival‑of‑the‑fittest effect and lifts industrial concentration. China’s silica industry is undergoing transformation from basic general‑purpose materials to high‑end functional new materials.

　　Market outlook: China’s silica market will continue to show structural divergence in the short run. Low‑end products remain weak in price, while domestic import‑substituted premium grades hold firm quotations. The downstream manufacturing restocking cycle in the fourth quarter is expected to recover purchasing demand from the tire and silicone sectors. In the medium‑and‑long term, the sustained development of new‑energy vehicles, photovoltaic energy storage and high‑end electronic materials will unlock huge growth potential for domestic high‑end silica. Local enterprises equipped with core modification technologies and comprehensive technical service systems will continuously capture the dividends of import substitution and occupy a more important position in the global new‑material supply chain.