Helium Supply Risk Pressures the US Government to Bring a Solution by March 2023

Texas- Helium prices in the US kept fluctuating between the supply shortage and rising demand for the product from semiconductor, fiber optics, and Magnetic Resonance Imaging (MRI) producing units. Despite the predicted global economic recession, the manufacturers are ready to accept the challenge and operate the industrial units with less capacity rather than completely shutting them down. As a result, the demand for Helium from the automotive and healthcare sectors is pressuring manufacturers to increase production capacity, yet the supply shortage hinders the procedure. Currently, the US holds most of the Helium gas production capacity and exports to Asina and European countries.

The US government is looking for feedback on the possibility that recent geopolitical developments have raised the risk to the US Helium supply. The survey by the US Geological Survey (USGS) and the Department of the Interior has already started and will be accepting the response by next month. The Bureau of Land Management (BLM) is overall in charge and will be handling the procedure for the survey and helping the government to conclude. Additionally, the US Geological Survey is looking for feedback to help determine whether prospective Helium supply shortages will endanger the production or usage of goods essential to defence, healthcare, aerospace, consumer electronics, and other industries. Moreover, natural gas prices are the major element required for Helium gas production. For the past month, natural gas prices have been moving southwards, yet manufacturers keep the prices on a higher edge due to increased demand from domestic and international markets.

Several factors were listed by the US Geographical survey that consequently impacts the production capacity and the prices of Helium. As per ChemAnalyst, competitive behavior between the Middle east region, especially Qatar city, may shift the buyer’s quantity accompanied by the storage and production capacity in the US market. Moreover, the demand-supply chain due to geopolitical uncertainty in neighboring countries may add to the hurdles and proportionally impact the final prices of Helium.