(June 15, 2026) The latest industry data shows that in June 2026, the domestic silica fume (precipitated silica) market continued its structural trend of "stable general prices, strong performance in high-end segments, and green expansion." Demand from sectors such as new energy vehicles, photovoltaics, and high-end silicone rubber continued to grow, coupled with the implementation of new regulations for green tires and an increase in export orders, accelerating the industry's transition towards higher end products and lower carbon emissions.

Market Prices: Benchmark prices remain stable, with both volume and price increases in high-end models
According to data from Business Society, the benchmark price for silica fume in China on June 10 was stable at 6000 yuan per ton, unchanged from the beginning of the month, with no significant fluctuations in the past week. The price has slightly decreased by 1.1% on a monthly basis, representing an annual increase of about 2.8%. The market shows a clear divergence:

General-purpose grade: The price range for silica fume produced by the precipitation method in Shandong (for rubber applications) is 5100-6000 yuan per ton, operating with moderate stability; in the Jinan area, the industrial-grade price is 5000-5800 yuan per ton, with intense competition.

High-end grade: Ultra-fine silica fume (with a particle size of over 1300 mesh) is priced at 6200 yuan per ton; high-dispersibility models have seen both increased volume and price due to demand from green tires, with some high-end orders exceeding 7000 yuan per ton.

Gas phase method: The price for high-end electronic grade is 22,000-28,000 yuan per ton, while for mid- to low-end grades it is 15,000-18,000 yuan per ton, maintaining a high-level consolidation.

Demand side: The explosion of emerging industries has made green tires the core driving force.
Green tires: With the upgrade of the EU tire labeling legislation and the advancement of China's "dual carbon" policies, the penetration rate of highly dispersed silica in tires with low rolling resistance is increasing rapidly. By 2026, tires used in new energy vehicles are expected to account for 35% of total tire consumption, and this trend is expected to continue.

Photovoltaic and silicone rubber: There is strong demand in areas such as photovoltaic film and seals for new energy vehicles. The price for silica used in silicone rubber is 6,300-7,000 yuan per ton, and orders are fully booked.

Export market: Orders have increased in regions such as Southeast Asia and the Middle East, with exports rising by 12% year-over-year in the first half of the year. High-end products account for 35% of exports.

Supply side: Green production capacity is being concentrated in certain areas, while low-end capacity is being phased out more quickly.
Large-scale project implementation: The 200,000-ton/year carbon dioxide acidification method silica project of Zhongke Fuhydro (Shandong) has entered the planning and publicity phase, with a total investment of 1.02 billion yuan. The first phase, which produces 60,000 tons, is expected to be put into operation in 2027. This process is low-carbon and environmentally friendly, in line with the industry's transformation direction.

Accelerated technological improvement and upgrading: Enterprises such as Sanming Fengrun Chemical have invested heavily to replace outdated coal-fired equipment with gas-fired hot blast stoves and two-stage gas generators, and have also built LNG gasification plants to reduce carbon emissions.

Policy-driven consolidation: New regulations in Jiangsu Province explicitly restrict the use of non-gas-phase methods and non-carbon dioxide acidification processes, phasing out production capacities of less than 15,000 tons/year. It is anticipated that 150,000 to 200,000 tons of low-end production capacity will be phased out within this year.

Competitive landscape: Increasing concentration and accelerated domestic substitution

The domestic silica industry exhibits characteristics of "concentrated total volume and segmented monopolies":

Consolidation of leading positions: Companies such as Quecheng Co., Ltd. and Longxing Chemical hold 68% of the domestic high-end rubber market share, 72% of the high-end personal care market share, and 85% of the electronics and pharmaceutical market share. Quecheng Co., Ltd. plans to acquire regional companies in 2026 to expand its production capacity in Central China.

Technical Breakthroughs: Domestic enterprises using the precipitation method have continuously made advancements in indicators such as dispersibility and tensile strength. The performance of some of their products is now approaching that of gas-phase methods, breaking the conventional purchasing notion that only gas-phase methods are viable.

Accelerated Domestic Substitution: In sectors such as high-end silicone rubber and photovoltaic materials, domestically produced silica is gradually replacing imports, with a significant cost-performance advantage.

Industry Outlook: The main trends are towards higher quality, greener production, and more functional products
Industry experts predict that the period from 2026 to 2030 will be a critical phase for the transformation of the silica industry, with three clear trends:
- Higher Quality: The proportion of high-dispersibility, low-volatility, and functional silica products will continue to increase, becoming a core competitive advantage for leading companies.

- Greener Production: Low-carbon technologies such as carbon dioxide acidification and clean energy alternatives will become more widespread, with green production capacity expected to account for 50% by 2028.

- Increased Concentration: With stricter environmental and energy consumption regulations, the consolidation of the industry is accelerating, and the CR5 (top 5 companies) concentration is expected to rise above 52%.

Driven by the growing demand from emerging downstream industries and policy support, the silica industry is entering a new stage of high-quality development. Leading companies with technological, production capacity, and cost advantages will fully benefit from these structural opportunities.

http://www.siliconeoil.net