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Why Fumed Silica Prices Doubled in One Year? Core Causes of the 2025–2026 Market Surge
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Why Fumed Silica Prices Doubled in One Year? Core Causes of the 2025–2026 Market Surge
In the past year, the domestic fumed silica market has experienced a continuous and sharp price surge. The mainstream factory price has nearly doubled, rising from more than 10,000 CNY per ton to 24,000–29,500 CNY per ton, hitting a new high in recent years. This round of price increase is not a simple market fluctuation but the result of the superposition of raw material costs, supply and demand structure, international situations, and overseas policies.
The skyrocketing price of core raw materials is the primary driving force. Fumed silica production relies heavily on methyltrichlorosilane, with an industrial ratio of 3 tons of raw materials for 1 ton of finished products. In the past year, the price of this key raw material soared from 1,000 CNY to 9,000 CNY per ton, directly doubling the production cost of manufacturers. Meanwhile, high-purity silicon tetrachloride surged by over 440% within one year due to the booming demand for AI optical fibers and high-end electronic materials. The overall rising cost of organosilicon upstream materials completely eliminated the possibility of short-term price decline.
Supply and demand imbalance further intensified the price uptrend. China accounts for more than 60% of global fumed silica production capacity and serves as the core global supplier. However, continuous factory maintenance and tightened compliant capacity have reduced effective market supply in the past two years. At the same time, downstream demand from photovoltaic energy, lithium battery separators, high-end silicone rubber, cosmetics, and pharmaceutical industries has grown rapidly, creating a typical supply shortage market.
Overseas policies and geopolitical situations acted as important boosters. The European Union continues to promote the toxicity assessment of precipitated silica, forcing global downstream manufacturers to switch from precipitated silica to safer fumed silica products. A large number of overseas procurement orders have flooded into the Chinese market. In addition, Middle East geopolitical conflicts and Red Sea shipping crises have pushed up global energy prices and cross-border logistics costs, further raising comprehensive export and production costs.
In conclusion, the fumed silica price surge is driven by rigid cost increases, expanding downstream demand, and global policy changes. The industry’s overall price center has been completely restructured, rather than a short-term speculative fluctuation.
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