(June 16, 2026) With the full implementation of the EU CBAM carbon tariff policy, coupled with continued growth in overseas orders for new energy tires and silicon-based new materials, the domestic silica industry is shifting from "domestic demand-driven" to a new phase of "dual circulation and quality improvement" driven by domestic and foreign industries. Traditional extensive silica export orders have shrunk sharply, and low-carbon, high-end modified products have become the core pillar of foreign trade growth.
Overseas trade differentiation is intensifying, with significant premiums on low-carbon silica orders
The latest customs sample statistics for June show that domestic exports of ordinary precipitated white carbon black fell by 12.7% month-on-month. European and American buyers have significantly reduced their purchases of high-carbon base payments, requiring additional carbon tariffs per ton of product and weakening price competitiveness. In contrast, foreign trade orders for highly dispersed silica produced using the CO2 recycling process surged 41% year-on-year, products can enjoy carbon tariff reductions, and overseas buyers are willing to offer a premium of 300-500 yuan per ton.
Tire manufacturing bases in Southeast Asia and the Middle East have become major incremental markets, with local automakers accelerating the adoption of low-rolling resistance new energy tires and setting strict requirements for silica performance indicators and low-carbon production certification. Many foreign trade companies reported that in nearly half a month, over 70% of overseas inquiries prioritized low-carbon production traceability reports, and small and medium-sized factories without environmental protection qualifications have basically lost export channels to Europe and the US.
Exports of low-end capacity are hindered, and the industry is accelerating the elimination of outdated production lines
The strict thresholds of the foreign trade market are driving domestic capacity structure adjustments. Ecological environment departments in multiple regions, together with the Bureau of Commerce, conducted a special survey of white carbon dioxide exports, filing export restrictions for small production lines without wastewater recycling or direct coal supply. Many small and medium-sized manufacturers, unable to invest in low-carbon technological upgrades, have had to abandon overseas markets and turn to the domestic low-priced domestic market, further squeezing the profit margin of general-purpose products.
Leading companies are seizing the window to accelerate the layout of overseas supporting capacity. Leading companies like Quecheng and Linko are planning low-carbon silica production bases in Southeast Asia to avoid carbon tariff barriers, supply overseas tire and rubber manufacturers locally, and reduce the dual costs of cross-border logistics and carbon taxes. Foreign trade of fumed silica also saw breakthroughs, with high-purity electronic-grade fumed silica exported to photovoltaic and lithium battery companies in Japan and South Korea, with export value in the first half of the year increasing by 26% year-on-year.
Emerging overseas downstream tracks open up long-term growth potential
Besides the traditional tire industry, overseas demand for silica continues to expand in photovoltaic encapsulation adhesives, lithium battery separators, and food anti-caking agents. The expansion of the energy storage industry in Europe and the US has driven up demand for hydrophobic fumed silica. The gross profit margin of these high-end products far exceeds that of industrial-grade silica, becoming a profit growth point for companies.
Industry foreign trade analysts analyze that in the next two years, carbon-related trade barriers will only continue to tighten, and it will be difficult for white carbon black companies to rely solely on low-price, volume-driven export models. The focus of industrial development will fully shift to three main directions: low-carbon production processes, high-end functional modified products, and overseas localized layout.
Risks and opportunities in future trading
Opportunity aspect: Global new energy vehicle penetration is steadily increasing, photovoltaic installations are growing year by year, high-end silica has long-term stable overseas demand, and companies with low-carbon certification and high-end R&D capabilities will continue to capture market share.
Risk Perspective: Upstream prices of sodium silicate and soda ash raw materials fluctuate, overseas industry expansion competition, and rising environmental trade barriers in various countries will continue to squeeze the survival space of small and medium-sized manufacturers.
Industry insiders say that at this stage, the core focus of enterprise transformation is to upgrade clean production processes, build a complete carbon footprint traceability system, and simultaneously develop specialized silica products suited to overseas new materials tracks, thereby breaking free from low-end homogeneous foreign trade competition.
