Middle East tensions disrupt helium supply chain; multiple A-share companies respond with limited impact; industry chain accelerates localization

Financial Associated Press, March 27 (Reporter Lu Tingting) The ongoing conflict between the United States, Israel, and Iran continues to disrupt the helium market, with tightening supplies from Qatar driving the price of this rare gas into an upward trend.

According to Longzhong Information, since February 28, the price of imported high-purity helium in China has increased from around 75 yuan per cubic meter to approximately 92 yuan per cubic meter. However, several domestic listed companies have responded to Financial Associated Press reporters that the current adjustment in helium prices is relatively limited.

Industry analysts believe that helium cylinder gas prices are likely to spike in the near future, with late March to April being a critical window period. Going forward, changes in the supply-demand fundamentals will remain the core factor driving helium price fluctuations.

Reporters from Financial Associated Press have noticed that the localization process of the helium industry chain is accelerating. For instance, domestic helium leader Jiufeng Energy (605090.SH) has relatively scarce helium production supply capabilities and is concurrently building liquid helium tank assets and liquid helium resources; Guanggang Gas (688548.SH) is the largest helium supplier domestically; and Hangyang Co., Ltd. (002430.SZ) has electronic-grade helium supply capabilities and is the first company in China to break through the localization of helium cylinders.

Price Outlook Bullish Under Tight Supply-Demand Balance

Helium is a byproduct of liquefied natural gas (LNG) processing, extracted through low-temperature distillation separation.

From a downstream application perspective, helium is an important raw material in multiple industries with a wide range of uses. For example, helium can achieve rapid cooling of components in semiconductor, liquid crystal display, and optical fiber manufacturing, as well as control heat transfer rates to improve production efficiency and reduce defects.

“Currently, global helium supply slightly exceeds demand, but recent developments in the Middle East have pushed it toward a tight supply-demand balance,” said Chen Wengui, an analyst at Zhuochuang Information. From a global helium resource distribution perspective, it is mainly concentrated in Qatar, Russia, and the United States, with Qatar accounting for about 35% of production capacity.

According to CCTV Finance, attacks from Iran have disrupted about 17% of Qatar’s liquefied natural gas export capacity. Bank of America recently estimated that, depending on market conditions, helium spot prices have already risen by about 40%.

What changes have occurred in domestic helium prices? Journalists contacted several relevant listed companies and learned that the current price adjustments are limited, with many enterprises stating that helium accounts for a small proportion of their business.

A staff member from Jiufeng Energy’s securities department said that helium business “still does not account for a very high proportion.” In downstream applications, the company mainly uses helium for commercial aerospace and retail end-user applications; currently, domestic helium prices are indeed trending upward, and the company’s helium prices follow market trends.

A staff member from Hangyang Co., Ltd.’s securities department admitted that helium business’s share of the company’s overall revenue is not particularly high. The company’s process involves extracting helium from air, which already has a low helium content. “We are installing purification units on some large air separation equipment to extract helium and other rare gases.”

Regarding recent helium price changes, this staff member indicated that reduced overseas helium sources due to the Middle East situation will lead to a decrease in overall helium output, and if demand remains unchanged, prices will continue to rise.

A representative from Jinhong Gas (688106.SH) stated that by the third quarter of 2025, the company’s helium revenue is expected to be about 100 million yuan, roughly 5% of total revenue. The company currently has stable overseas helium sources, with the BOG helium extraction project in Xinjiang under construction; currently, there has been little change in the company’s helium prices.

A representative from Huate Gas (688268.SH) said that helium products account for a limited proportion of the company’s total revenue, and the current price adjustment scope is also limited.

The Sun Ying team from Zhongtai Building Materials & Chemicals believes that with the blockade of the Strait of Hormuz, helium in transit is gradually being consumed. If helium inventories enter a phase of rapid depletion, prices may spike, making late March to April a key period for observation.

Chen Wengui also stated that short-term and long-term fluctuations in helium prices are both closely linked to the transmission of supply-demand fundamentals. In the short term, besides fundamental changes, attention should also be paid to current policy adjustments, geopolitical situations, as well as variables such as key equipment failures and logistics bottlenecks. In the long term, focus is more on the pace of new capacity commissioning and the sustained growth of core downstream demand such as semiconductors. Meanwhile, the popularization of recycling technologies and the development of emerging applications are reshaping the market landscape from both structural and marginal perspectives.

Rising Expectations for Localization?

Helium applications are mainly concentrated in fields such as nuclear magnetic resonance, semiconductors, and aerospace, with nuclear magnetic resonance accounting for about 29%, and usage in semiconductors and aerospace also showing steady growth. In the future, with ongoing advancements in high-tech sectors, areas like quantum computing and nuclear fusion will also become new growth points for helium demand.

China is currently one of the major helium-consuming countries worldwide. “From the supply side, on one hand, domestic substitution is slightly increasing; on the other hand, the import market is shifting from highly concentrated sources to diversified risk-averse models. For example, under the weakening of Qatar’s price advantage, the proportion of imported resources entering China has decreased by about 27 percentage points over the past three years,” Chen Wengui told Financial Associated Press.

Data from Zhuochuang Information shows that in January and February this year, China imported 379.426 tons of helium from Qatar, a year-on-year decrease of 15.71%, accounting for 41%. Market analysis suggests that due to the Middle East situation, Qatar’s helium supply is unlikely to recover in the short term, and imports from this source may further decline.

Reporters from Financial Associated Press have observed that many domestic manufacturers are still expanding helium-related production capacity. Besides the listed companies mentioned above, Shudao Equipment (300540.SZ) is investing in the Inner Mongolia Yahui LNG-BOG helium extraction project, which can extract and refine helium from LNG plant BOG gases; Shuidafeng Gas (603318.SH) is building the Qingyang project, expected to be operational by late 2026, with an annual helium output of 500,000 cubic meters; Jiufeng Energy stated that by 2025, based on its existing Inner Mongolia Sentai’s 500,000 cubic meters/year refined helium capacity, it will complete the Sichuan Luzhou 1 million cubic meters/year refined helium project, increasing total capacity to 1.5 million cubic meters/year and gradually entering the ramp-up phase.

Looking ahead over the next three years, supply fluctuations and demand structure upgrades will be key variables in the global helium market.

Chen Wengui emphasized that in terms of supply, attention should be paid to the expansion of new capacities domestically and internationally, as well as geopolitical impacts such as the continuity of Qatari supplies, Russia’s delivery capabilities, and the influence of U.S. strategic privatization; in terms of demand, future growth will be driven by both semiconductors and emerging technologies. Overall, the supply growth rate in the helium market is expected to surpass demand growth, though short-term supply volatility may trigger price rebounds.