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 production.
In global helium production, the United States leads with a share of 56.25%, followed by Qatar at 28.13%. Algeria accounts for 8.75%, Australia 2.5%, Poland 1.25%, Russia 1.88%, and other regions make up 1.25%.
Analysis of Development Trends in China's Helium Industry
In the second half of 2019, helium imports are unlikely to see a significant reduction due to the high-profit support in the Chinese market. Qatar has relatively ample supply, while the U.S. may experience a slight decrease in production due to maintenance at some companies. However, major foreign enterprises will allocate resources globally to capitalize on the high profits available in the Chinese market.
In 2019, the price of helium in China continued to rise, with the current market price for 40L bottled high-purity helium reaching 1,700-1,900 yuan per bottle. The procurement price for long-term contract customers of tube-trailer helium increased to 200-270 yuan per cubic meter, while the transaction price for some retail markets reached 320-350 yuan per cubic meter, showing significant price differences across different procurement channels. The tight supply can be attributed to a 4.3% reduction in imports, which constrained supply, coupled with sustained demand growth. Beyond direct supply-demand dynamics, hoarding by some intermediate traders has also been a key factor driving the tight helium supply in China. Currently, under high market prices, some end-users have reduced their helium consumption, and pressure is evident in high-priced transactions. Some intermediaries have also begun releasing their inventories.
The significant price surge in China's helium market does not fully align with supply-demand fundamentals, as market speculation and channel hoarding still play a substantial role. Without strong fundamental support, the positive effects of speculation and hoarding are gradually fading, leading to a decline in some high-priced markets. In the second half of 2019, in the absence of clear positive or negative influences, the Chinese helium market may undergo rational adjustments. Meanwhile, the global helium resource shortage will continue to support the market, with prices likely to remain high but showing weak adjustments.