(May 16, 2026) The domestic silica gel raw material market has exhibited slight fluctuations. The prices of core raw materials such as soda ash and sulfuric acid have seen periodic changes, which directly affect the production costs of silica gel. As a result, companies in the industry are forced to respond to these fluctuations by optimizing processes and adjusting their raw material procurement to ensure production stability and market competitiveness. The ability of the industry to control costs has become crucial for companies to stand out in the market.
As the core raw materials for silica gel production, the price trends of soda ash and sulfuric acid directly determine the production costs of the industry. The latest market data from May 16 shows that the mainstream price for domestic light soda ash is 2850-2950 yuan per ton, an increase of 50 yuan per ton from the previous day and a 4.2% rise compared to last month; the mainstream price for industrial sulfuric acid remains stable at 580-620 yuan per ton, but there has been a 3.1% decrease from last month. The fluctuation in raw material prices has led to a moderate upward trend in silica gel production costs, which has had a certain impact on companies' operations.
According to feedback from companies, on May 16, several silica gel producers stated that the periodic changes in raw material prices have been reflected in their production processes. Some smaller and medium-sized enterprises, due to their smaller procurement volumes and weaker bargaining power, have seen a slight increase in production costs, which has squeezed their profit margins.The person in charge of a small to medium-sized silica enterprise stated that recently, the continuous rise in the price of soda ash has resulted in an increase of approximately 120 yuan in the production cost of silica per ton for the company. Currently, the company is attempting to control these costs by optimizing production ratios and reducing material losses.
Compared to smaller enterprises, leading silica companies, thanks to their advantages such as large-scale purchasing and long-term supply agreements, have been able to effectively mitigate the impact of fluctuations in raw material prices. Today, a major silica enterprise revealed that it has signed long-term strategic cooperation agreements with several domestic raw material suppliers, ensuring fixed purchase prices for key materials such as soda ash and sulfuric acid. At the same time, by establishing an early warning system for raw material inventory levels, the company is able to adjust its procurement schedule in a timely manner, thereby minimizing the impact of price fluctuations on its production costs.
In addition to optimizing procurement strategies, companies are also striving to reduce raw material consumption through technological upgrades. Industry research conducted on May 16th showed that most large-scale silica enterprises in China have already adopted new production processes, which have increased the utilization rate of raw materials such as soda ash and sulfuric acid to over 95%. This approach reduces material losses by 8% to 10% compared to traditional methods, not only helping to control production costs effectively but also enhancing the stability of product quality.Industry analysts point out that the fluctuations in the raw material market on May 16th reflect the close interconnection between the silica industry and its upstream raw material sectors. In the short term, raw material prices are expected to continue to experience minor fluctuations, placing greater demands on the cost control capabilities of silica enterprises. In the long run, as industry concentration increases, leading companies will further strengthen their supply chain strategies. Through scale-based and intensive development, they will enhance their ability to cope with fluctuations in raw material prices, while also promoting the industry’s progress towards lower costs and higher quality.
Additionally, these fluctuations in raw material prices indirectly trigger a reshuffle within the silica industry. Some small and medium-sized enterprises with outdated technologies and weak cost control capabilities will be unable to withstand the increased costs associated with rising raw material prices. As a result, they may gradually reduce their production capacity or withdraw from the market. This will lead to a further concentration of industry resources in the hands of leading companies that possess cost and technological advantages, thereby improving the overall quality of development within the industry.
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