Recently, the supply contraction of coal tar has driven a sharp rise in carbon black prices. Tire manufacturers face mounting raw material cost pressure and show a stronger willingness to switch materials in formulations, creating a notable structural market trend for silica. Supply and demand for general precipitated silica stay balanced with limited price swings, and transactions are dominated by long-term contracts. Highly dispersed modified silica and fumed silica for new energy tires and electronic materials enjoy robust demand with extended lead times and stronger pricing power. The industry pattern of “fierce low-end competition and tight high-end supply” becomes more pronounced.

　　Tires remain the largest downstream market for silica. Global low-carbon tire regulations keep updating. After the implementation of the new EU tire label rules, stricter standards are imposed on tire rolling resistance and wet grip. Manufacturers increase silica loading ratios for new energy passenger tires, heavy-duty radial tires and off-the-road engineering tires. With its unique porous network structure, silica can bond closely with rubber molecular chains. It improves tensile strength, tear resistance and wear performance while cutting rolling resistance and energy consumption, balancing energy saving and driving safety. Nevertheless, native silica is rich in surface silanol groups with high polarity. Direct mixing easily triggers powder agglomeration and impairs rubber processability. Powder surface modification, coupling agent selection and mixing process optimization are core links in tire formulation development. New energy tires bear heavier loads and require much higher standards for silica specific surface area, pore size distribution and batch stability than conventional tires. Material certification cycles are generally long, and new formulations often take years of verification before commercial use.

　　Beyond the tire sector, silica consumption keeps expanding in multiple high-tech material tracks. Thanks to its reinforcement, thickening, thixotropic and anti-settling properties, fumed silica sees rapid demand growth in silicone sealants, electronic potting compounds, photovoltaic encapsulation films and lithium battery separator coatings. Modified precipitated silica is widely applied in industrial coatings, adhesives, agrochemical additives and daily chemicals. It acts as a matting and anti-settling agent in coating systems and serves as a rheology modifier to optimize powder texture in cosmetics and skincare products. Meanwhile, low-carbon production routes are moving forward steadily. Pilot silica projects using agricultural solid waste such as rice husk ash as silicon sources progress smoothly. Such routes generate lower carbon emissions compared with traditional processes, comply with overseas carbon tariff requirements, and gradually become a differentiated competitive strategy for leading manufacturers.

　　On the supply side, China has abundant total silica capacity yet severe structural oversupply. Conventional rubber-grade precipitated silica has saturated capacity. Small and medium manufacturers compete mainly by slashing prices, which keeps squeezing profit margins. Enterprises voluntarily reduce operating rates to hedge risks amid weak market conditions. A supply gap still exists for highly dispersed silica dedicated to tires and ultra-pure electronic-grade silica, leaving broad room for import substitution. Leading enterprises continuously invest in modification research. By adjusting modifiers and optimizing reaction and post-treatment processes, they strike a balance between powder dispersion, reinforcing performance and processing flowability. They also provide formulation testing and technical services to strengthen customer loyalty. The industry faces multiple constraints. Price volatility of basic materials including soda ash, sulfuric acid and electricity continuously affects production costs. Tighter environmental regulations raise capital investment for waste treatment, lift market entry barriers and accelerate the phase-out of backward and inefficient capacity.

　　In foreign trade, overseas demand shows divergence. With the rollout of carbon border policies in Europe and America, exports of high-carbon conventional silica face headwinds, while high-end modified silica with low-carbon certifications gains more favor among overseas buyers. Tire manufacturing bases in Southeast Asia and the Middle East keep expanding production. High-quality domestic silica wins steady export orders due to reliable supply and cost-performance advantages, and overseas markets serve as an important growth driver for leading producers.

　　Market analysts comment that the silica market will continue operating in a differentiated pattern in the short run. Prices of standard grades stay stable, with demand fluctuating in line with peak and off seasons of downstream rubber and coating industries. Supported by solid order books, high-end modified silica and fumed silica maintain firm prices. In the medium and long term, low-carbon tire policies, expansion of new energy and advanced material industries, and overseas low-carbon orders will collectively fuel demand growth for high-value silica. Industry competition gradually shifts from price wars to formulation support, custom powder development and product certification systems. Companies mastering core modification technologies will further consolidate their advantages, and industrial resources will keep concentrating on top players.