The upstream sources of helium primarily include natural gas and air separation equipment. Helium is widely used in military industry, scientific research, petrochemicals, refrigeration, healthcare, semiconductors, pipeline leak detection, superconducting experiments, metal manufacturing, deep-sea diving, high-precision welding, and optoelectronic product manufacturing.
In global helium production, the United States leads with *** output, accounting for 56.25%, followed by Qatar at 28.13%. Algeria contributes 8.75%, Australia 2.5%, Poland 1.25%, Russia 1.88%, and other regions combined make up 1.25%.
Analysis of Development Trends in China's Helium Industry
In the second half of 2019, helium imports may not see a significant reduction due to the support of high profits in the Chinese market. Qatar has relatively ample supply, while the U.S. might experience a slight decrease in supply due to maintenance at some enterprises. However, major foreign companies will allocate resources globally to capitalize on the high profits available in the Chinese market.
In 2019, China's helium market prices continued to rise. Currently, the market price for 40L bottled high-purity helium has increased to 1,700-1,900 yuan per bottle, while long-term agreement customers for tube-trailer helium are paying 200-270 yuan per cubic meter, with spot market transactions reaching 320-350 yuan per cubic meter in some regions, showing significant price variations across different procurement channels. The tight supply is attributed not only to a 4.3% reduction in imports, leading to decreased supply, but also to sustained demand growth. Beyond direct supply-demand dynamics, stockpiling by some intermediary traders has further exacerbated the helium shortage in China. Currently, under high market prices, some end-users have reduced helium usage, putting pressure on high-price transactions, and some intermediaries have begun releasing inventory.
The sharp rise in China's helium market prices does not fully align with supply-demand fundamentals, with market speculation and channel stockpiling playing a significant role. In the absence of strong fundamental support, the positive impact of speculation and channel stockpiling is gradually fading, and some high market prices have already shown signs of decline. In the second half of 2019, barring significant positive or negative influences, China's helium market may undergo rational adjustments. Meanwhile, the global helium resource shortage will continue to support the market, likely resulting in weak adjustments around the current high price levels.