(June 3, 2026) The current silica industry has moved away from the era of extensive capacity competition. Driven by the expansion of the new energy and new materials industries, the market demand structure has undergone a fundamental transformation. Many manufacturers have abandoned low-price volume-driven models and are fully committed to developing specialized white carbon black products in lithium batteries, sealants, eco-friendly coatings, and other fields.
From the current market procurement situation, competition in the traditional general-purpose tire white carbon black market is intensifying, with profit margins continuously shrinking and small and medium-sized manufacturers under pressure on profitability; In contrast, orders for special-modified silica are in short supply, and downstream purchases of silica for power battery separator additives, seals for new energy vehicles, and water-based industrial coatings have steadily increased, with many factories already backing orders through late June. High-end silica using vapor phases has benefited from the implementation of new regulations in the silicone and food consumables industries, with tight market supply and firm quotations.
On the cost side, prices of basic raw materials such as water glass and sulfuric acid fluctuated slightly, combined with consistently high labor and environmental maintenance costs. Mass production of low-end silica now has no profit margin, forcing manufacturers to optimize product structures and shut down inefficient general production lines.
Highlights on the foreign trade side are prominent: overseas new energy industry expansion drives increased import demand. Domestic specialty white carbon black leverages its cost-performance advantage to capture overseas market share. Southeast Asian and Middle Eastern new energy parts manufacturers continue to inquire and purchase from China, with modified silica exports steadily rising, becoming the main force for industry revenue growth.
Industry insiders analyze that the future development of the white carbon black industry will focus on product customization. Relying on the long-term growth dividends of the downstream new energy industry, the market space for refined specialty white carbon black continues to expand. The long-term market is favorable, but conventional general-purpose white carbon is constrained by overcapacity, limiting upward momentum, with the market mainly focused on price stabilization.
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