April 18, 2026 | Beijing | Authoritative Industry Release Entering the second quarter of 2026, China’s white carbon black (silica) industry has moved past the previous broad-based price rally and entered a new cycle of in-depth structural adjustment and technology-led competition. Unlike market focus on price fluctuations and raw material cost trends, the core industry logic has fundamentally shifted: continuous breakthroughs in bottleneck high-end technologies, large-scale domestic substitution, and accelerated clearance of backward and inefficient capacity. The industry landscape is rapidly transforming from fragmented competition to a high-quality development stage marked by industry concentration among leading enterprises and technology-based tiering. According to the latest industry operating data released by the China Rubber Industry Association, by the end of Q1 2026, operating rates across China’s silica industry showed significant divergence:

• Leading listed companies and specialized “little giant” enterprises producing specialty silica maintained high operating rates of 85%–95%, with order backlogs generally extended to over 45 days.
• Meanwhile, small and medium-sized capacity and general low-end capacity, accounting for nearly 30% of domestic output, operated at only 30%–50%. Some small energy-intensive firms with no R&D capabilities have entered staged production halts and capacity phase-out, marking substantial progress in supply-side reform.

The core driver of this industry adjustment is a technological revolution forced by upgrading downstream demand. For years, China’s silica sector had long suffered from “oversupply in low-end capacity and reliance on imports for high-end products”. High-value-added core products such as highly dispersible silica for tires, high-purity fumed silica for semiconductors, modified silica for pharmaceutical and food use, and nano-silica for lithium battery separators were long dominated by chemical giants from Germany, the US and Japan. Domestic products lagged noticeably in purity, particle size stability, surface modification precision and batch consistency. Since 2026, technological breakthroughs by leading domestic enterprises in collaboration with research institutes have entered a concentrated commercialization phase. This month, several major Chinese producers successively announced that three self-developed core products — highly dispersible silica for tires, low-heavy-metal high-purity food-grade silica, and hydrophobic fumed silica for new energy applications — have completed full certification by multinational tire manufacturers, global food giants and leading domestic lithium battery makers, achieving stable mass supply. Core performance indicators fully match top international brands, while supply costs are more than 15% lower than imported equivalents, officially breaking over a decade of foreign technological monopoly and price barriers. At the same time, tightened national environmental regulations and energy consumption controls have strongly accelerated industry consolidation. Since 2026, major silica-producing provinces including Shandong, Jiangxi, Fujian and Jiangsu have introduced targeted control policies. Backward capacity with excessive energy use, substandard wastewater and residue treatment, lack of environmental facilities, or operating rates below 40% for six consecutive months faces targeted measures including production restrictions, mandatory rectification, suspension or shutdown. Over 250,000 tons of inefficient and outdated silica capacity is scheduled to be phased out within the year. With clear policy guidance, new industry capacity is tilting entirely toward high-end, green and large-scale projects. Since Q2 2026, 100% of newly announced or launched silica projects focus on specialty grades and low-carbon green processes, with no plans for general low-end capacity. Low-carbon technologies including CO₂ acidification, biomass silicon source recycling, full-process waste heat recovery and zero wastewater discharge have become standard features of new projects. These not only align with China’s “dual carbon” goals but also fully meet entry requirements of the EU Carbon Border Adjustment Mechanism (CBAM) and international green supply chain standards, removing barriers for domestic silica to access global high-end markets. Structural transformation in downstream applications has further widened industry divergence.

• Traditional sectors such as general rubber products and low-grade shoe soles show slowing silica demand growth, with high price sensitivity, intensifying low-end price wars and shrinking profits for small manufacturers.
• Emerging high-end fields including green energy-saving tires, NEV rubber components, semiconductor packaging materials, high-end pharmaceuticals and food, power batteries and eco-friendly coatings have maintained double-digit silica demand growth for eight consecutive quarters. These sectors only accept high-performance, highly stable certified products with low price sensitivity, becoming core profit growth drivers for leading enterprises.

Senior industry experts noted that 2026 marks a pivotal year for the transformation of China’s silica industry. The old logic of expansion through scale and low-cost volume has become obsolete. Future core competitiveness will depend entirely on R&D capabilities, high-end product certification progress, green and low-carbon manufacturing levels, and depth of partnerships with high-end downstream clients. Over the next 12 months, the phase-out of low-end capacity is expected to accelerate further, with market share rapidly concentrating toward leading enterprises possessing independent core technologies, large-scale production capacity and full-chain environmental compliance. China’s global share of high-end silica is set to rise sharply, completing the industry’s transformation from “large but weak” to “strong and sophisticated”.