In late October 2026, competition within China’s precipitated silica industry is gradually shifting from a race for basic production capacity to contests over powder surface modification technologies. Growing demand for differentiated formulations from downstream sectors drives precipitated silica manufacturers to increase R&D investment in custom grades. A steady stream of new modified precipitated silica products has been launched, opening up brand-new growth tracks. Industry monitoring data shows the commodity precipitated silica market features loose supply and demand. Mainstream ex-factory quotations fluctuate narrowly within 6340-6430 CNY per ton with no upward price drivers. End orders from traditional shoe-making and ordinary rubber miscellaneous parts remain weak. Downstream enterprises enforce strict capital control, adopt hand-to-mouth procurement and strictly limit raw material inventories. Traders operate cautiously and maintain low stock levels. Most transactions are long-term framework orders from loyal customers, and there is substantial bargaining room for small spot orders. East China has abundant supplies and fierce low-price competition. Restricted by raw material transportation costs, spot transaction prices in Southwest and Central China are slightly higher. Commodity precipitated silica plants flexibly adjust operating rates and voluntarily cut output to reduce backlogged inventories.

　　On the supply side, powder surface modification has become the core technical focus for precipitated silica manufacturers. Domestic producers keep optimizing wet and dry modification processes. By adjusting the type and coating ratio of modifiers, they alter the hydroxyl content on precipitated silica particle surfaces, so as to tune powder hydrophilicity, hydrophobicity and dispersibility to meet formulation requirements of various systems. Some leading enterprises can customize particle size, specific surface area and surface functional groups according to client demands, developing special grades for rubber, coatings, adhesives and electronic materials. With normalized supervision on environmental protection and energy consumption, small and medium production lines with outdated processes and insufficient modification R&D capabilities are phased out gradually, lifting industrial concentration continuously. Fluctuations in the costs of upstream sodium silicate, sulfuric acid and electricity keep squeezing profit margins of commodity grades, pushing enterprises to transform into the high-value custom powder track. Many companies build application evaluation laboratories, supporting formula testing and sample assessment services to strengthen collaborative development capacity with downstream clients.

　　On the demand side, differentiated formulation needs across multiple downstream industries fuel consumption growth of custom modified precipitated silica. In the tire sector, custom high-dispersion precipitated silica matches green tire formulas of various brands, balancing low rolling resistance and wet grip performance, and maintains stable orders. For coatings and inks, hydrophobically modified precipitated silica is applied in waterborne systems to solve powder sedimentation and sagging issues and improve weather resistance and scratch resistance of paint films. In the adhesive and sealant industry, modified fumed silica delivers thixotropic and thickening effects and is widely used in new energy sealants. In emerging tracks including lithium battery separators, photovoltaic adhesive materials and electronic potting, inquiries for high-purity custom precipitated silica keep rising. Special modified precipitated silica for high-end daily chemicals and pharmaceutical carriers achieves steady sales growth. In contrast, the traditional rubber and shoe material markets suffer from severe product homogenization. Buyers focus solely on purchase prices and only source ordinary precipitated silica, resulting in sluggish demand growth. Carbon black remains at high price levels. Rubber goods manufacturers keep conducting filler substitution tests, and custom modified precipitated silica gains more replacement opportunities thanks to adjustable powder properties.

　　In foreign trade, overseas recognition of custom modified precipitated silica rises steadily. New material and tire enterprises in Europe and Southeast Asia continue sample verification of domestic products. Precipitated silica manufacturers with custom development capabilities receive growing overseas inquiries. Exports of ordinary precipitated silica face pressure. Released local capacity in Southeast Asia brings low-cost competing products. Coupled with carbon tariffs, ocean freight and exchange rate fluctuations, export growth of conventional grades remains weak. Exporters are more prudent when accepting large long-term orders and prefer short-cycle deals to mitigate risks. High-end semiconductor and pharmaceutical-grade specialty precipitated silica still partially depends on imports. Domestic players keep refining sophisticated surface modification technologies, leaving broad room for import substitution in premium markets.

　　Market outlook: In the short run, China’s precipitated silica market will continue its structural divergence. Prices of commodity precipitated silica stay weak and stable with slow inventory digestion, while various custom modified precipitated silica maintains strong demand resilience. In the medium and long term, the refined development of downstream new material industries will continuously drive the growth of powder customization demand. Industrial competition is transforming from pure price wars into comprehensive competition covering powder modification technology, product customization capacity and supporting formulation services. Leading enterprises mastering core powder modification technologies and capable of rapidly developing custom grades will further expand their advantages. Small and medium manufacturers that only produce commodity precipitated silica and lack R&D capacity will face mounting profit pressure. Follow-up attention should be paid to the commercialization of new powder modification processes, the pace of formula iteration of downstream tire and new material manufacturers, and cost changes of upstream raw materials.