Precipitated Silica Prices Stabilize and Tend to Rise
On March 27, the domestic precipitated silica market showed a stable and slightly upward trend, with the mainstream quotation of precipitated silica for silicone rubber maintained at 6600–7500 RMB/ton, unchanged from the previous trading day, but the market transaction atmosphere was significantly warmer. The main driving factor for the market’s strong operation is the tight supply of raw materials: the tight supply of sulfuric acid continues, and the price of sulfuric acid has risen across the board to exceed 1500 RMB/ton, which has significantly pushed up the production cost of precipitated silica enterprises.
On the demand side, affected by the upward trend of the silicone market, downstream mixing rubber enterprises have increased their stockpiling, and the demand for precipitated silica has been further boosted. At the same time, the recovery of terminal demand has also driven the improvement of the order situation of precipitated silica enterprises. Market feedback shows that most precipitated silica enterprises have sufficient orders, and the production rhythm is stable. In contrast, the soda ash market, another key raw material, operates stably: the downstream demand is sluggish, and enterprises have reduced their operating load to avoid inventory accumulation, so the price remains stable and has no obvious impact on the cost of precipitated silica. Industry analysts predict that with the continuous tight supply of sulfuric acid and the further release of downstream demand, the price of precipitated silica is expected to maintain a steady upward trend in the short term.
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