(May 31, 2026) Moving away from traditional single-track tire rigid dependence, in May 2026, the domestic silica industry will show a new pattern of multi-track demand resonance, strengthening niche markets, and steady recovery in corporate profitability. With the continued recovery of downstream industries such as new energy, daily chemicals, silicone rubber, and high-end coatings, demand in the silica segment has surged rapidly, breaking the traditional off-season trend of May in previous years. Structural market opportunities have become prominent, with price differences between different product specifications gradually widening and the overall industry operating conditions continuing to improve.
The traditional rigid demand market is steadily recovering, providing solid support for the industry's fundamentals. As the largest application scenario for white carbon black, demand in the rubber and tire markets has steadily rebounded this month. Entering May, domestic tire companies' operating rates continued to rise, with production and sales data for all-steel and semi-steel tires improving month-on-month, and end-user auto parts market enthusiasm for restocking increased. Green tires maintain a stable rigid demand for highly dispersed silica, supporting high market volume for precipitated silica. Compared to the subdued market in the first quarter, downstream terminal restocking demand was concentrated in the second quarter, effectively supporting the overall market.
The rapid growth of emerging application tracks has become the core engine driving industry growth. Since the beginning of this year, the downstream demand structure for white carbon has undergone significant changes, with demand growth in new energy and high-end materials far outpacing traditional industries. In May, purchases of silica continued to rise in fields such as lithium battery separator modification, photovoltaic film production, silicone rubber, and high-end industrial coatings. With its excellent properties such as thickening, sedimentation resistance, and reinforcement, vapor-phase silica continues to gain penetration in new energy auxiliary materials, electronic packaging materials, and high-end daily chemical fields, with supply remaining in the high-end segment.
The daily chemical and food-grade segments maintained steady growth. With the upgrading of consumer demand, the market size for high-end toothpaste, cosmetics, and food additives continues to expand, driving steady growth in demand for specialized fine silica. These products have high added value and strong customization, are less affected by fluctuations in bulk raw material prices, and have become a key sector for many fine chemical companies. This month, orders for daily chemical-grade silica remained stable, downstream brand companies kept steady stocking, and segmented markets showed strong resilience.
Market structure is clearly differentiated, and product price gaps continue to widen. According to industry transaction data, the current market for ordinary rubber-grade white carbon black is highly competitive, prices remain stable, and profit margins are relatively limited; High-end modified silica, ultra-pure vapor-phase silica, and specialized coating-grade silica face high technical barriers and scarce production capacity, resulting in firm prices and significant premiums. The industry as a whole shows a structural trend of "stable volume at the low end, premium at the high" market, completely changing the previous pattern of homogeneous low-price competition across the industry.
Production and sales improved simultaneously, and corporate profitability continued to recover. With the release of demand across multiple downstream sectors, the overall production-sales ratio of domestic white carbon black enterprises has risen, and inventories remain low and within a healthy range. Most mainstream companies have extended order scheduling cycles, normalized on-demand production and on-demand shipment models, and the market's destocking effect is significant. Diversified development on the demand side effectively offset the risk of fluctuations in a single industry, significantly enhancing the industry's overall risk resistance, and the company's monthly revenue and gross margin have seen a marked recovery compared to the first quarter.
The foreign trade market remained stable and improved, with export structure continuously optimized. In May, domestic exports of white carbon continued to show a steady trend. In addition to traditional Southeast Asian markets, the proportion of high value-added products exported to high-end markets in Europe and America continued to rise. The recovery of overseas high-end manufacturing has driven increased demand for functional silica imports, further broadening export channels for domestic companies.
Industry insiders say that the silica industry has entered a new stage of demand structure upgrading and breakthroughs in niche segments. In the short term, downstream end-user demand in June is expected to continue its recovery trend, with the market overall steady with a slight upward trend. In the medium to long term, as emerging industries such as new energy, high-end manufacturing, and fine daily chemicals continue to expand, the silica segment has broad incremental potential. Companies with R&D capabilities and high-end customized production capacity will continue to benefit, and the industry as a whole will enter a new stage of high-quality, high value-added development.
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