by PENG Tianmei

Helium prices in China have surged and supply has tightened sharply after disruptions in the Middle East, underscoring the importance of stable global supply for the critical industrial gas.

"Right now it's not about price — there's simply no supply," a helium supplier in Jiangsu told Jiemian News on April 1.

Helium, a colorless and odorless gas that is extremely scarce on Earth, is essential for semiconductor etching and cooling, superconducting magnets, aerospace fuel pressurization, MRI systems and defense applications. Often dubbed "liquid gold," it is typically extracted as a byproduct of natural gas.

The latest disruption stems from halted production in Qatar, which accounts for about 30% of global helium supply. China sourced roughly 54% of its helium imports from Qatar in 2025, amplifying the impact of the outage.

Market participants say concerns over Middle East tensions have triggered panic buying. Prices have climbed to around 760 yuan per cubic meter, roughly double normal levels.

The surge is pushing up costs across downstream industries. While demand remains rigid, some industrial users are already under pressure, with certain production processes constrained by limited helium availability.

The situation is compounded by helium's storage challenges. Liquid helium must be kept in vacuum-insulated containers at temperatures near absolute zero. Industry consultant Phil Kornbluth said about 200 specialized helium containers are currently stranded in the Strait of Hormuz due to the conflict.

These containers, which can cost up to $1 million each, can only maintain insulation for 35 to 48 days. Beyond that, helium begins to "boil off" into gas, leading to losses and rising internal pressure that poses safety risks.

This suggests that helium already in transit could be depleted as early as mid-April, removing the last buffer in the global supply chain.

In response, helium supplies are increasingly being allocated to higher-value applications. Semiconductor fabs, where shutdowns can cost tens of millions of dollars per day, are reportedly stockpiling supply globally — even at the expense of allocations originally intended for hospitals and research institutions.

China remains an active participant in the global helium market, with domestic supply continuing to develop alongside imports. Domestic natural gas fields contain helium concentrations of just 0.03%–0.05%, far below the 1%–7% seen in helium-rich fields globally, limiting extraction efficiency.

Although China's helium output has increased significantly in recent years, imports still account for a large share of supply, though the ratio has begun to decline as local production rises. Between 2020 and 2024, capacity expanded nearly sevenfold, though utilization has been constrained by costs and feedstock availability.

Amid the supply shock, alternative sources are emerging. Market participants say helium from Siberia is increasingly being routed to China via land borders.

Brokerages including CITIC Securities and Guosen Securities note that if geopolitical tensions persist, suppliers such as Russia and Algeria could gain market share in China. Domestic companies with access to overseas contracts, as well as those involved in helium recovery and recycling, are likely to benefit from rising prices.

Chinese gas companies are also accelerating efforts to diversify supply. Strategies include securing multi-source imports, expanding storage and transport capacity, and advancing domestic extraction technologies.

Exploration progress is beginning to yield results. According to China's Ministry of Natural Resources, newly proven helium reserves reached 4.07 billion cubic meters during the 14th Five-Year Plan period (2021–2025), with several major gas fields each exceeding 200 million cubic meters in reserves.

Data cited by Guosen Securities show China's helium production capacity reached 14.66 million cubic meters in 2025, with output at 4.63 million cubic meters, reflecting rapid growth but still falling short of demand.

The supply crunch has also driven investor interest. Shares linked to the helium sector, including Fujian Snowman Co., Ltd., have surged recently, supported by strong capital inflows as markets bet on companies with storage, transport and resource capabilities.

Key producers include Huate Gas, Guanggang Gases, Jovo Energy, Jinhong Gas and Hangyang Group. Some have secured long-term overseas supply contracts or are advancing domestic projects, while others dominate helium equipment manufacturing.