The Chinese Fused Silica market was overall stable in April 2025, with prices remaining constant before falling slightly at the end of the month. This small adjustment seemed to represent normal market rebalancing and not any underlying supply-demand disequilibrium, taking place against a background of differential performance within various downstream sectors.

From the supply side, production levels of Fused Silica in the domestic market were stable as companies operated at medium to high levels. Most companies benefit from having their own mineral resources, which ensure constancy in raw materials and protect the market from severe supply-side disruptions. Overall production level remained constant with manufacturing activities going on actively, thereby maintaining sufficient levels of inventory to support current demands.

On the demand side, procurement activity displayed a split image across various industry segments. Conventional industries such as steel and cement production had muted demand for Fused Silica refractory products, following a trend seen in earlier quarters.

This was, however, offset by strong consumption from high-tech industries, led by electronics and semiconductor production. Increased demand for high-end glass components in tablets and smartphones, combined with increased demand for high-frequency laminates and packaging substrate from 5G, AI server supported the consumption of Fused Silica in high-end sectors meaningfully. Moreover, the automotive electronics industry sustained consistent procurement as the volume of electric vehicle production grew. This differentiation in demand provided a cushion to overall Fused Silica consumption.

The broader economic situation presented both challenges and opportunities for the Fused Silica market. The mid-month revelation of U.S. tariff exemptions on some semiconductor-related products brought a positive change in trade sentiment. Exemption of 125% tariffs on approximately 20 electronic and semiconductor-related products is likely to bolster export prospects for Chinese producers. Consequently, demand for high purity Fused Silica applied in semiconductor machinery and electronic devices can be on the rise, motivating producers to ramp up for improved production. Domestic companies were, however, wary owing to ongoing worries about technology export restraints and the ongoing re-structuring of supply chains across the world.

In the future, while the exemptions from tariffs provide short-term relief and scope for recovery of export-led demand for Fused Silica, they do not represent a turning point in underlying threats of U.S. trade restrictions. Chinese manufacturers continue to be cautious since the threat of additional constraints or conditional policies remains. Supply chain resilience and indigenous innovation will continue to be key to sustaining long-term growth for Fused Silica. Market players will watch closely downstream demand recovery and further policy change impacting advanced material trade.