(May 12, 2026) Recently, the domestic silica market has shown a contradictory pattern of moderate recovery in demand, relatively sufficient supply, rigid rise in costs, and weak price transmission.

On the upstream raw material side, the prices of major raw materials such as quartz sand, sodium silicate, sulfuric acid, and liquid alkali have continued to run at a high level recently, superimposed on energy consumption, environmental protection, and transportation costs, and the production costs of silica enterprises have continued to rise. However, due to the large production capacity base of the industry and the release of silica production capacity by the general-purpose precipitation method, the overall market supply is loose, and it is difficult for enterprises to effectively transmit cost pressure to the downstream.

The downstream market shows an uneven trend of hot and cold. Although the traditional tire and rubber products industry has a seasonal recovery, the market demand for terminal vehicles and auto parts is weak, and downstream enterprises purchase on demand and take goods at low prices, which has significantly suppressed the price of tire-grade silica; Although the demand for high-end fumed silica in the field of photovoltaic rubber and silicone rubber is good, the production capacity is concentrated in the head enterprises, and it is difficult for small and medium-sized manufacturers to set foot in and hedge the decline in profitability of general products.

In terms of regional markets, the competition in the main producing areas of East and South China is particularly fierce, and some manufacturers have adopted a low-price volume strategy in order to seize market share, further disrupting the regional price system. Although the overseas demand on the export side is stable, overseas buyers have strong bargaining power, superimposed on the impact of international competitors, and export profits are also limited.

Industry insiders pointed out that the core pain points of the current silica industry are low-end overcapacity and insufficient high-end supply. In the context of continuous rising costs and difficult price increases, small and medium-sized production capacities lacking technology and cost advantages will be accelerated by the market, and the pace of industry reshuffle will accelerate. In the future, only enterprises that lay out high-end special products, optimize production processes, and strictly control costs can gain a firm foothold in this round of industry adjustments.