Helium prices increase by 20% in a single month! Specialty gas companies see a rise in overseas orders, and the dispersed gas sources serve as a "comfort zone" for the industry.

Science and Technology Innovation Board Daily March 13th (Reporter Wu Xuguang)
As the US-Iran conflict continues to escalate, global supply of various rare gases, including helium, has tightened in recent days, with prices rising accordingly.

According to data from Longzhong Information, as of March 12th, the average market price of domestically produced helium cylinders has risen to 79.5 yuan per cubic meter, up 24.22% from 64 yuan per cubic meter on February 28th.

Recently, reporters from Science and Technology Innovation Board Daily contacted companies such as JinHong Gas, HangOxygen, and HuaTe Gas to learn that, affected by international geopolitical conflicts, helium prices for end-market applications have increased to varying degrees since late February, with gains of approximately 20%-50%.

At the same time, feedback from end markets indicates that this price increase has had limited short-term impact on sectors like semiconductors. Companies like Baiwei Storage and Yongxi Electronics have stated that the recent helium price hike has limited impact on their operations.

▍Company Responses to the Price Surge: Diversified Raw Material Sources and Multiple Measures to Hedge Supply Risks

Helium, as one of the globally scarce elements, is increasingly used in semiconductor manufacturing, commercial aerospace, metal engineering, and medical applications. Market data indicates that the domestic helium market is expected to reach $387.6 million by 2026, with a compound annual growth rate of 5.8% over the next four years.

Xia Peijun (pseudonym), senior analyst at Teqi Network’s helium industry division, told Science and Technology Innovation Board Daily that recent tensions in the Middle East, especially the disruption of shipping through the Strait of Hormuz and the shutdown of Qatar helium plants, have directly cut off nearly 40% of global helium transportation channels; China relies on Qatar for nearly 40% of its helium imports, and supply gaps are gradually affecting the domestic market.

Regarding the impact of regional conflicts on helium prices, HuaTe Gas staff said that before and after the outbreak of the US-Iran conflict, the price of their 40L, 99.999% pure high-purity helium was increased by about 100 yuan, roughly a 20% rise. “This quote is only valid for this week; whether prices will change next week is uncertain at this point.”

On recent helium price changes, HuaTe Gas staff explained that domestic helium prices have increased relatively modestly, mainly driven by overseas markets. After export restrictions on Qatar helium raw materials, the company’s overseas orders have increased significantly, and domestic helium products have been partially diverted, which can push prices higher. Major overseas manufacturers like Samsung are willing to pay higher prices to lock in volume, leading to concentrated supply in the global market.

It is noted that HuaTe Gas sources helium from a diversified supply chain, mainly importing from Russia and other regions, which keeps overall costs relatively low.

A staff member from JinHong Gas’s East China division said that currently, the retail price for 40L, 99.999% pure helium used in semiconductor cooling is about 2,500 yuan per bottle, more than 50% higher than at the end of February. “Of course, actual prices vary depending on customer demand, so it’s hard to generalize.”

“The core reason for this round of price increases is the continuous rise in raw material procurement costs, and our parent company requires us to follow current market prices,” said the JinHong Gas staff. They also noted that helium price increases vary among companies mainly due to different raw material sources. JinHong Gas’s helium is all pure imported product, and they avoid relying solely on Qatar to mitigate supply disruption risks. Although Russian raw materials are stable, prices may be higher. The company’s procurement department manages the proportion of raw materials from different regions to diversify risks.

According to a person from JinHong Gas’s Secretary Office, the company’s helium raw materials do not involve Qatar, mainly sourcing from Russia, the US, and other regions.

The Science and Technology Innovation Board Daily observed that compared to JinHong Gas and HuaTe Gas, Guanggang Gas has a deeper cooperation with Qatar.

In February 2025, Guanggang Gas signed a 20-year helium supply agreement with QatarEnergy, making it the first domestic company to sign a long-term helium procurement deal with Qatar. Additionally, the latest company data shows that by 2024, Guanggang Gas’s helium imports accounted for 13.4% of the total national imports, making it the largest domestic private helium supplier.

However, Guanggang Gas also stated that their actual annual helium import volume depends on the production levels at source.

Regarding the impact of the Qatar raw material supply on the company after the US-Iran conflict, a Guanggang Gas Secretary Office staff said that the company’s operations are normal, with diversified gas sources and no reliance on a single region. “Qatar supplies about 40% of global helium, but our sources are diversified; besides Qatar, we also purchase from the US, Russia, Australia, and others. Even if Qatar’s supply decreases, we have other stable sources. Other industry players may lack the ISO storage tanks and core resources to flexibly adjust supplies, but Guanggang Gas has established a complete risk mitigation system to ensure stable supply to customers without disruptions.”

Regarding whether helium prices will rise with supply tightness, a staff member from Guanggang Gas’s Securities Department said that the company signs long-term contracts with major clients, typically lasting 15 years, with an annual price adjustment mechanism based on current market conditions. Helium is not a typical bulk commodity; the company adopts a pre-locking volume model, such as purchasing helium for extraction five years in advance at a fixed price, rather than raising prices immediately in short-term shortages. Contract terms vary among clients, all customized and bundled with other gases like oxygen, nitrogen, and argon, with price adjustments usually annually, depending on contractual agreements.

On recent helium market price increases, Guanggang Gas staff also said that their 40L bottled helium is priced around 800 yuan per bottle, “almost no recent price increase; we still have stock to ensure stable supply. Future price changes depend on the severity of Middle East tensions.”

Regarding the divergence in helium prices among companies and market segmentation, Xia Peijun from Teqi Network said that current retail prices for 40L bottled helium generally range from 700 to 750 yuan per bottle. Some retailers quote higher prices, above 1,300 yuan, mainly due to added costs from cylinder filling, logistics, and packaging, which are reflected in the retail price but do not represent the industry’s main transaction level. End customers are willing to accept slight price increases, mainly to ensure supply stability.

▍Industry Outlook: Continued Tight Supply with Limited Short-term Impact on End-Use Sectors

As Middle Eastern shipping crises worsen, the global helium supply remains tight in the short term.

Xia Peijun told the Daily that “current geopolitical conflicts in the Middle East are likely to push helium prices upward, with the most immediate impact on foreign gas companies like Iwatani, DAIYANG, Linde, and Liquid Air; if Russian and Australian supplies remain stable, domestic helium prices are unlikely to see the sharp 300%-400% increases seen in early 2022 during the Russia-Ukraine conflict, because downstream demand in the domestic market has not surged significantly, so the driving force for price increases is relatively weak.”

Meanwhile, “domestic helium production capacity is rapidly increasing, mainly through LNG tail gas extraction. However, natural gas in China generally has low helium content, making extraction costly and output limited. But PetroChina’s helium extraction projects in Xinjiang and Inner Mongolia have already significantly increased output. Currently, domestic and Russian sources can basically meet the domestic market demand,” Xia added. Looking ahead, she expects that the impact of geopolitical shocks will cause actual helium shortages in China and globally in March to May, combined with rising market demand, potentially pushing import helium cylinder prices to around 100 yuan per cubic meter soon.

In the semiconductor sector, Qatar helium, due to its high purity, quality, and mature extraction technology, is favored by high-end semiconductor customers, mainly used in wafer manufacturing, lithography, etching, and temperature control processes.

Baiwei Storage, a leading domestic storage chip company focusing on flash memory chips and modules, requires helium in wafer manufacturing and module testing.

Regarding recent market helium price increases, a Baiwei Storage official said that their main raw material is wafers, which are a core cost component. Helium, as a rare gas, is a consumable that accounts for a small proportion of overall costs and is not a core raw material, so they cannot currently assess the specific impact of helium price increases on the company.

Yongxi Electronics shares this view; their helium is mainly used in packaging leak detection processes. A Yongxi Electronics official said that their helium consumption is small and has little impact on the company.

Tongfu Microelectronics, a leading domestic advanced packaging and testing enterprise, uses helium in chip packaging cooling and hermeticity testing.

Regarding the recent helium price increase’s impact on packaging and testing, a Tongfu Microelectronics official said it has no significant impact and is not entirely unaffected. “In the short term, the impact on the packaging and testing industry is limited, with some lag; the price transmission from upstream to our company takes time. Overall, operations are currently stable.” They also noted that the company sources helium from multiple channels and adjusts prices based on market conditions and customer feedback.