For the Quarter Ending September 2024
North America
In Q3 2024, the Helium pricing environment in North America experienced a significant downturn, primarily driven by an oversupply situation and diminished procurement efforts. This decline was exacerbated by weakened demand from vital sectors, including healthcare and high-tech manufacturing, which added to the prevailing negative sentiment. The United States, as a major player in the helium market, faced substantial price fluctuations amid excess supply and stagnant market dynamics.
Throughout the quarter, prices consistently fell, reflecting notable shifts between the first and second halves of the period. Seasonal factors and geopolitical tensions further complicated the landscape, contributing to a challenging pricing environment. Importantly, tepid demand and ample inventories have led manufacturers to refrain from initiating any price changes in the domestic market, with overall operating rates remaining low. However, prices remained largely unchanged compared to the previous quarter, signaling a lack of improvement in the market dynamics.
By the end of the quarter, the market sentiment reflected persistent negativity, underscoring the difficulties faced by the helium sector in North America. This continued struggle suggests that without significant demand recovery, the market may remain under pressure moving forward.
APAC
In Q3 2024, the APAC region witnessed a notable decline in Helium prices, with India experiencing the most significant fluctuations. This downward trend was influenced by a combination of factors, including high supply levels from key producers such as Qatar and a decrease in import costs. The market became oversaturated as consistent production levels and reduced freight charges contributed to the surplus availability of Helium. Additionally, stable natural gas prices supported continuous production, further pressuring prices downward. Throughout the quarter, there were also disruptions in production due to plant shutdowns, which impacted supply dynamics. In India specifically, the pricing environment remained negative throughout the quarter, characterized by steadily decreasing prices. Seasonal trends and market dynamics played crucial roles in these fluctuations, showing a direct correlation between high supply levels and low demand. Despite these challenges, prices remained stable compared to the previous quarter, indicating no significant improvement; however, there was an increase of 8% in comparison to the same quarter last year. The quarter-ending price of USD 94740/MT for Helium Gas CFR JNPT in India reflected the overall decreasing trend in pricing, underscoring the challenges faced in the Helium market during this period.
MEA
In Q3 2024, the Helium pricing landscape in the MEA region experienced a notable decline influenced by several key factors. This downturn was primarily driven by oversupply and reduced procurement activities, which exerted downward pressure on prices. The decrease in demand, particularly from critical sectors such as healthcare and high-tech manufacturing, further contributed to the overall negative trend. Qatar, a significant player in the Helium market, experienced the most pronounced price fluctuations as it struggled with excess supply amid subdued market dynamics. Throughout the quarter, prices consistently decreased, registering a notable -3% change between the first and second halves of the period. Seasonal factors affecting demand in key importing nations further exacerbated the downward price trend, while geopolitical tensions and global economic uncertainties added additional challenges to the market. Despite these difficulties, prices remained stable compared to the previous quarter, indicating no significant improvement, while they did increase by 8.5% compared to the same quarter last year. As the quarter ended, Helium Gas prices reached USD 92,500/MT FOB Doha in Qatar, reflecting a predominantly negative pricing sentiment and underscoring the challenging conditions faced by the Helium market in the MEA region.
Europe
In Q3 2024, the Helium pricing landscape in the European region faced a notable decline influenced by multiple factors. Oversupply and diminished procurement activities created substantial downward pressure on prices, particularly affecting key consuming sectors such as healthcare and high-tech manufacturing. The Netherlands experienced the most significant price fluctuations as it grappled with excess supply and lackluster market dynamics. Throughout the quarter, a consistent drop in prices was observed, particularly between the first and second halves. Seasonal influences further intensified the downward pricing trend. Additionally, geopolitical tensions and global economic uncertainties added to the adverse market conditions. Overall, tepid demand and sufficient inventories have prompted manufacturers to refrain from any price developments in the domestic market, resulting in persistently low operating rates. Furthermore, prices remained largely unchanged from the previous quarter, signaling a lack of improvement in market conditions. As the quarter concluded, the pricing sentiment continued to reflect a predominantly negative outlook for the helium market across Europe, highlighting the ongoing challenges in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American region experienced mixed sentiments regarding helium pricing, with slight fluctuations influenced by various factors. In the USA, where the most significant price changes occurred, helium prices showed a steady rise in the first two months of the quarter, while in the last month, prices declined slightly.
In April and May, key factors influencing helium prices included supply disruptions, increased demand from various industries, and geopolitical tensions. Supply disruptions, particularly in the Red Sea region, created an imbalance between supply and demand, leading to higher prices. Growing demand from industries such as healthcare, manufacturing, and technology further fueled the price increase. Geopolitical tensions added to market uncertainty, along with the sale of the U.S. Federal Helium Reserve, which raised global concerns about future supply stability, contributing to price fluctuations.
Overall, the pricing environment for helium in Q2 2024 can be described as positive, with prices showing a steady rise influenced by supply disruptions, increased demand, and geopolitical tensions.
APAC
In Q2 2024, helium pricing in the APAC region has experienced a notable upward trend, influenced by a confluence of market dynamics and external factors. A significant driver has been the persistent supply constraints stemming from geopolitical tensions and production disruptions. Notably, the shutdown of the Amur facility in Russia, coupled with inconsistent output from Gazprom's units, has strained global helium supply chains. Additionally, the ongoing sanctions and trade restrictions imposed by the EU have exacerbated these supply issues, creating a robust upward pressure on prices.
Focusing on India, the helium market has seen the most pronounced price changes in the region. The overall trend has been distinctly bullish, underpinned by both seasonal demand spikes and broader market sentiment. The summer season has traditionally driven higher helium consumption in various industrial applications, contributing to elevated procurement activity. This seasonal uptick, combined with cautious market optimism, has resulted in a steady rise in prices. Compared to the same quarter last year, the price increase has been substantial, reflecting the compounded effects of supply constraints and sustained demand.
Throughout Q2 2024, helium prices in India showed a consistent upward trajectory. The first half of the quarter witnessed gradual price increments, which intensified in the latter half due to intensified procurement activities and supply pressures. The quarter concluded on a high note, with helium gas prices reaching USD 9,210,000/MT Ex-Bengaluru. This pricing environment, driven by both external disruptions and intrinsic market demand, has been predominantly positive, reflecting the ongoing challenges and opportunities within the helium market in India and the broader APAC region.
Europe
In Q2 2024, Europe experienced mixed sentiments regarding helium pricing, with slight fluctuations influenced by various factors. In the Netherlands, where the most significant price changes occurred, helium prices showed a steady rise throughout the second quarter of 2024.
In April and May, key factors influencing helium prices included supply disruptions, increased demand from various industries, and geopolitical tensions. Supply disruptions, particularly in the Red Sea region, created an imbalance between supply and demand, leading to higher prices. Growing demand from industries such as healthcare, manufacturing, and technology further fueled the price increase. During this period, MEA countries operated on reduced schedules, and the construction sector experienced stability.
Overall, the pricing environment for helium in Q2 2024 can be described as positive, with prices showing a steady rise influenced by supply disruptions, increased demand, and geopolitical tensions.
MEA
The second quarter of 2024 has been marked by a pronounced upward trajectory in helium prices within the MEA region, driven by a confluence of key factors. A critical driver has been the ongoing geopolitical tensions, coupled with the strategic acquisition of essential helium reserves, which have collectively exacerbated supply constraints. The sale of the U.S. Federal Helium Reserve to the industrial gas company Messer, for instance, has created substantial market ripples, leading to heightened procurement costs as entities scramble to secure their helium supplies. Furthermore, industry-wide disruptions, including the performance challenges at the Amur facility in Russia and supply chain interruptions due to new EU sanctions, have further strained global helium availability.
In this context, Qatar has emerged as a focal point of significant price volatility, witnessing the most marked adjustments across the region. The overall trend in Qatar reflects a robust increase in helium prices, influenced by seasonal procurement activities and heightened summer demand. This uptrend correlates with a consistent escalation in global demand and tight supply scenarios. The quarter saw a notable 1% price increase from the previous quarter, underscoring the persistent bullish market sentiment. The first half of the quarter experienced a stable price environment, which subsequently surged by 1% in the latter half, driven by intensified market activities.
Concluding the quarter, the helium price in Qatar reached USD 94,000/MT FOB Doha, cementing a positive pricing environment propelled by complex interplay of supply-side constraints and robust demand dynamics.
For the Quarter Ending March 2024
North America
The North America region witnessed mixed sentiments for helium pricing in Q1 2024, with slight fluctuations influenced by various factors. In the USA, which experienced the most significant price changes, helium prices showed a steady rise in the first two months of the quarter, while in the last month, prices declined slightly.
In January and February, the key factors influencing helium prices were supply disruptions, increased demand from various industries, and geopolitical tensions. Supply disruptions, particularly in the Red Sea region, created an imbalance between supply and demand, leading to higher prices. The growing demand from industries such as healthcare, manufacturing, and technology further fueled the price increase. Geopolitical tensions added to the uncertainty in the market, along with the sale of the U.S. Federal Helium Reserve, which raised concerns globally about future supply stability, contributing to price fluctuations. However, in March, helium prices declined by 1% after a steady rise over the last year due to the discovery of helium concentrations up to 13.8% by Pulsar Helium in Minnesota's Jetstream.
Overall, the pricing environment for helium in Q1 2024 can be described as positive, with prices showing a steady rise influenced by supply disruptions, increased demand, and geopolitical tensions.
APAC
The APAC region experienced mixed sentiments for helium pricing in Q1 2024, with slight fluctuations influenced by various factors. In India, which witnessed the most significant price changes, helium prices showed a steady rise in the first two months of the quarter, while in the last month, prices declined slightly.
In January and February, key factors influencing helium prices included supply disruptions, increased demand from various industries, and geopolitical tensions. Supply disruptions, particularly in the Red Sea region, created an imbalance between supply and demand, leading to higher prices. The growing demand from industries such as healthcare, manufacturing, and technology further fueled the price increase. Geopolitical tensions added to the market's uncertainty, along with the sale of the U.S. Federal Helium Reserve, which globally raised concerns about future supply stability, contributing to price fluctuations. However, in March, helium prices declined by 1% after a steady rise over the past year due to the discovery of helium concentrations up to 13.8% by Pulsar Helium in Minnesota's Jetstream, largely influenced by Ramadan in the Middle East as India imports helium from Qatar. During this period, countries in the MEA operated on reduced schedules, and the construction sector experienced stability.
Finally, the quarter-ending price for helium gas in India was recorded at INR 7870000/MT CFR JNPT. Overall, the pricing environment for helium in Q1 2024 can be described as positive, with prices showing a steady rise influenced by supply disruptions, increased demand, and geopolitical tensions.
MEA
The MEA region experienced a mixed quarter for helium pricing in Q1 2024, with slight fluctuations influenced by various factors. In Qatar, which witnessed the most significant price changes, helium prices showed a steady rise in the first two months of the quarter, while in the last month, prices declined slightly.
In January and February, the helium market in Qatar encountered a positive pricing environment, with prices displaying a moderate increase. Several factors contributed to this upward trend. Firstly, there was a growing demand for helium across various industries, including scientific research, medical technology, manufacturing, and space exploration. This surge in demand raised concerns about potential supply shortages, particularly with the recent sale of the U.S. Federal Helium Reserve. However, in March, helium prices declined by 1% after a steady rise over the past year due to the discovery of helium concentrations up to 13.8% by Pulsar Helium in Minnesota's Jetstream. This decline was largely influenced by Ramadan in the Middle East. During this period, countries in the MEA operated on reduced schedules, and the construction sector experienced stability.
Finally, the quarter-ending price for helium gas in Qatar was recorded at USD 92000/MT, FOB Doha. Overall, the pricing environment for helium in Q1 2024 could be described as positive, with prices showing a steady rise influenced by supply disruptions, increased demand, and geopolitical tensions.
Europe
Europe witnessed mixed sentiments for helium pricing in Q1 2024, with slight fluctuations influenced by various factors. In the Netherlands, which experienced the most significant price changes, helium prices showed a steady rise in the first two months of the quarter, while in the last month, prices declined slightly.
In January and February, the key factors influencing helium prices were supply disruptions, increased demand from various industries, and geopolitical tensions. Supply disruptions, particularly in the Red Sea region, created an imbalance between supply and demand, leading to higher prices. The growing demand from industries such as healthcare, manufacturing, and technology further fueled the price increase. Geopolitical tensions added to the uncertainty in the market, along with the sale of the U.S. Federal Helium Reserve, which raised concerns globally about future supply stability, contributing to price fluctuations. However, in March, helium prices declined by 1% after a steady rise over the last year due to the discovery of helium concentrations up to 13.8% by Pulsar Helium in Minnesota's Jetstream and largely influenced by Ramadan in the Middle East as Europe imports helium from the Middle East. During this period, countries in the MEA operated on reduced schedules, and the construction sector experienced stability.
Overall, the pricing environment for helium in Q1 2024 can be described as positive, with prices showing a steady rise influenced by supply disruptions, increased demand, and geopolitical tensions.
For the Quarter Ending December 2023
APAC
The APAC region's helium market has witnessed several significant factors influencing prices in the fourth quarter of 2023. Firstly, there has been moderate demand from industries such as healthcare and aerospace, particularly for MRI machines and spacecraft. This demand, along with increased natural gas prices, has contributed to an overall bullish market situation. Secondly, the supply of helium faced challenges due to reliance on imports from countries like Qatar and the United States. Limited supply availability and rising natural gas costs have further pushed up prices. Lastly, fluctuating currency exchange rates, with the INR depreciating by 0.45% against the USD, have impacted the pricing trend for helium in the APAC region.
In India, which has experienced the most significant price changes in the region, the market has seen a continuous uptrend in helium prices. Fluctuating natural gas prices, coupled with extraction and transportation costs, have added pressure to helium suppliers and buyers. High demand for cryogenic equipment in Indian research institutes, driven by progress in the aerospace industry, and growing annual demand in the automobile sector have contributed to these trends. Additionally, the manufacturing sector has shown positive signs, with the Purchasing Managers Index (PMI) rising from 55.5 in October to 56 in November. Overall, the Indian helium market has remained stable with moderate supply and high demand. The quarter-ending price of helium gas in India was USD 94836/MT CFR JNPT.
MEA
In the MEA region, the fourth quarter of 2023 for helium was characterized by various factors influencing the market and prices. Firstly, there was a tight supply of helium in the international market, particularly in the healthcare sector, creating a supply-demand imbalance and leading to an increase in prices. Secondly, rising natural gas prices had a proportional effect on helium prices as it is extracted as a byproduct of natural gas. The cost pressures on suppliers and buyers increased due to the extraction and transportation of natural gas. Lastly, the sustained and robust demand for helium from the healthcare sector and global markets played a significant role in shaping the overall dynamics of the helium market in the region. In Qatar, the leading country in the MEA region, helium prices experienced a slight increase in the fourth quarter of 2023. This rise can be attributed to the rising natural gas prices and persistent demand from the Asian market, particularly countries like China, India, and Taiwan. The consistent growth in demand and extraction costs influenced the price levels. Qatar has also secured agreements to supply natural gas to international partners, further impacting the prices. The latest price of Helium Gas FOB Doha in Qatar for the quarter ending december 2023 is USD 92000/MT. Overall, the MEA region witnessed a bullish market situation with moderate supply and moderate to high demand for helium. The tight supply and robust demand from various sectors, especially healthcare, contributed to the price increase in Qatar. The price of Helium Gas in Qatar for the current quarter saw a 5% increase compared to the previous quarter of 2023. Additionally, there was a 2% price increase in the second half of the quarter compared to the first half. However, the price remained unchanged compared to the same quarter last year. The market dynamics and pricing trends were primarily driven by the supply-demand balance and the fluctuations in natural gas prices.
Europe
In Q4 2023, helium gas prices in Europe continued their upward trajectory, reaching new highs, posing challenges for industries reliant on helium, including healthcare, research, and entertainment. Prices for bulk helium averaged around €120 per cubic meter across Europe, marking a 30-40% increase compared to Q3 2023, with localized prices even exceeding these averages. Global supply shortages due to limited reserves and disruptions in major producing countries played a significant role, exacerbated by rising transportation costs. Despite high prices, demand remained relatively stable, especially in healthcare applications like MRI scans, where helium is irreplaceable. Regional variations in helium prices within Europe were influenced by transportation costs, local supply and demand dynamics, and currency fluctuations. Industries faced significant impacts, including increased costs for essential healthcare services, budget constraints for scientific research, and squeezed profit margins in the entertainment industry. The overall market dynamics were driven by supply shortages, rising transportation costs, and speculative buying triggered by concerns about future supply shortages.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, Helium prices remained in a northward direction on account of inclined demand amidst the supply shortage. Helium prices in the North American market continued to stick on their inclined phase as the demand from the automotive and aerospace sectors. The Helium demand outlook has surpassed the supply availability in the domestic market, proportionally raising the price range. To complete the assigned target from the domestic and international markets, the US is elevating its production capacity of Helium. North American Helium has successfully launched its seventh helium purification facility near Ponteix, Saskatchewan, a Canadian Province. Nevertheless, the report also indicated that the fundamental inflationary pressures at the production level were decreasing, creating an opportunity for Helium suppliers to achieve improved profit margins. Moreover, the production cost remained on the higher side as the natural gas prices along with inclined labor shortage and other microelements factors contributed to governing the overall market dynamics of Helium in the North American market. Last quarter, there was a higher-than-expected increase in producer prices in the United States, driven mainly by rising costs in energy and food items, alongside growing demand from the Asian market.
APAC
During the third quarter of 2023, the value elements of helium in the Asian market took off in the regional market. Helium prices experienced an increase due to a more positive demand outlook, despite facing challenges in the supply chain. India relies on Qatar and the United States as sources of Helium gas, which has created limitations within the supply chain. Presently, a significant portion of the global supply is allocated to uncertain, remote, and politically unstable countries. Additionally, increased domestic transportation costs have influenced the overall dynamics of the Helium market. Helium is a chemically inert gas used to create non-reactive protective environments in applications like semiconductor manufacturing and fiber optics production. Sustained demand from industries such as aerospace and healthcare has played a crucial role in shaping the overall trends in the Helium market. Anticipated demand from sectors like semiconductors, automotive, and healthcare in the Indian market has continued to grow.
Europe
In the second quarter of the European market, Nitrogen prices declined due to sustained weak demand and cautious purchasing patterns among buyers. The high costs of natural gas, which serves as the primary raw material for nitrogen fertilizers, disrupted much of the nitrogen fertilizer production in the European Union. This production disruption coincided with a resurgence of fertilizer manufacturing within Europe, a reduction in import requests, and a global decrease in fertilizer prices. The region and Helium manufacturers aimed to explore potential strategies for establishing a green fertilizer support initiative in Europe. Recognizing the critical role of fertilizer supply in ensuring food security and economic stability, governments worldwide have taken a more proactive stance in securing these vital resources. Additionally, the European region faced economic challenges as it entered a recession, with the European Central Bank raising interest rates, leading to a domino effect on commodity prices.
Middle East- Asia
Helium gas prices throughout the third quarter of 2023 remained on the higher edge as the demand offtakes from domestic and international markets. Helium exporting nations, including Qatar Gas, continued their operations with caution. Qatar Petroleum recently declared its ambitious goal to increase the country's LNG production capacity to 126 million tons per annum (mtpa) by 2027, which represents a significant 64% increase from the current capacity of 77 mtpa. This announcement was made by the Minister of State for Energy Affairs, who also holds the position of President and CEO of Qatar Petroleum. Qatar aims to boost its existing LNG production from 77 million tons to 126 million tons per year by 2027. The resurgence of the Asian market, driven primarily by countries like China, India, and Taiwan, has compelled Helium producers to maintain higher price levels. Additionally, the consistent growth in demand has led to increased extraction costs. QatarEnergy has affirmed its commitment to supply 3.5 million tonnes of gas annually as part of this agreement. This follows two previous agreements with Total from the previous year, where Total acquired a stake in Qatar's extensive North Field gas expansion project.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Helium prices remained in a northward direction on account of inclined demand amidst the supply shortage. The North American Helium supplier's major supplier (Blue Star Helium Ltd) is aiming to incline production and complete the demand outlook in the domestic and international markets. Convey and work on an underlying helium recuperation plant at the high-grade Explorer revelation in the Las Animas Region of Colorado. Features, for example, the US bank emergency alongside slant interest for the item, relatively affected the general market elements of Helium. Towards the quarter's end, Helium costs took off as the interest for the item in the global market slanted. North American Helium Inc declared that it effectively brought two extra helium filtration plants. Moreover, the production cost remained on the higher side as the natural gas prices, along with inclined labor shortage and other microelements factors, contributed to governing the overall market dynamics of Helium in the North American market. The privatization shift in the US, expanding requests, and rising costs have made a rising helium industry in North America that currently presents potential open doors for financial backers.
APAC
During the second quarter of 2023, the value elements of Helium in the Asian market took off in the regional market. Throughout the second quarter, natural gas prices remained on the slightly higher edge, and the Indian natural gas suppliers focused on stocking up the natural gas to achieve the demand outlook. Moreover, the Helium costs rose pointedly as the production network stayed lopsided and travel times expanded. The Indian medical care industry, as well as semiconductor production, exhibited more popularity for the item. Imported prices from USA and Qatar remained on the higher edge impacting the overall selling prices. Furthermore, the demand outlook for Helium gas consequently remained active in medical, healthcare, and other sector, specifically for X-ray and MRI machines. In certain pieces of Asia, there is additionally expanding examination put upon organizations hoping to trade Helium abroad because of fears about draining stores inside their limits. To this end, Indian authorities, as of late, declared plans to increment taxes on imported helium-containing items by up to 10%.
Europe
Throughout the second quarter of 2023, Helium prices remained on the higher edge on account of supply shortage and the facets pushing the prices on the higher side. Supply disruption, geopolitical issues, and quantity shortage contributed equally to governing the overall market dynamics of Helium in the European market. In the previous quarter of 2023, the European Commission had set forward the European basic unrefined components act as interest for rare raw materials, which is supposed to increase dramatically in the upcoming quarter. Critical Raw Materials (CRMs) are unrefined components of high financial significance for the EU, with a high risk of supply disturbance because of their convergence of sources and absence of good, reasonable substitutes. Moreover, the demand for the product from healthcare, medical facilities, and semiconductor manufacturing remained on a higher edge, in contrast to the tight supply chain. The expansion outlook keeps on being excessively high throughout the quarter. Considering the continuous high expansion pressures, the European Central Bank continued to increase the interest rates.
Middle East- Asia
Helium gas prices throughout the second quarter of 2023 remained on the higher edge as the demand offtakes from domestic and international markets. Qatar gas and other significant Helium exporters kept on working on a moderate scale to complete the demand. The Qatar Monetary Centre PMI expanded in the three months, as development rates for production, new orders, business, and buying all cutting-edge essentially remained on a positive note. The new business developed at the quickest rate, owing generally to the marking of new agreements with both existing and new clients, as well as new item offers. All out-business movements expanded extensively as a result. The comprehension was embraced by QatarEnergy, to assist Qatar Oil with the Proposal of Oil based Products Association Ltd. and by ENOC Supply and Trading LLC, a helper of ENOC, QatarEnergy. Non-oil private area work rose to the furthest extent, assisting firms with promoting diminishing their degrees of extraordinary business. Interest in inputs was reinforced. However, supply chains adapted commendably as normal lead times were cut once more.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Helium prices in the North American region inclined on account of tight supply availability of the product. Helium shortage continued to impact the overall prices sentiments of Helium along with fluctuating prices of its upstream (natural gas) in the regional market. Facets such as the US bank crisis, along with incline demand for the product, proportionally impacted the overall market dynamics of Helium. Towards the quarter end, Helium prices soared as the demand for the product in the international market inclined. North American Helium Inc announced that it successfully brought in two additional helium purification plants.
APAC
During the first quarter of 2023, the price dynamics of Helium in the Asian market soared in the domestic market. Despite falling natural gas prices, there was a shortage of the product on the worldwide market, resulting in rising Helium gas prices. Due to a lack of supply for the product in India, tilted imported prices influenced the final pricing. Helium prices rose sharply towards the quarter end as the supply chain remained uneven and transit times increased. The Indian healthcare industry, as well as semiconductor manufacturing, demonstrated a higher demand for the commodity. Helium is a significant component in the smooth operation of MRI equipment, which plays an important role in diagnostics.
Europe
Helium prices in Europe fluctuated during the first quarter of 2023 due to fluctuating natural gas prices on the worldwide market. Increased energy prices, as well as a disrupted supply chain, influenced final prices. As a result of the Russian government's implementation of sanctions, there was a shortfall of natural gas available on the European market in Q1. The primary cause driving up the price value was stagnant demand in the automobile, healthcare, and other industries, as well as inconsistent supply from end-use manufacturing facilities.
For the Quarter Ending December 2022
North America
During the fourth quarter of 2022, Helium prices in the North American region fluctuated on account of the demand-supply gap. In the first half of the quarter, Helium prices moved northwards as the natural gas prices varied throughout the quarter. Furthermore, the helium gas shortage occurred in the regional market. The demand strength from the healthcare and aerospace sectors. In the second half of the fourth quarter, the market prices of Helium declined, backed by the weak natural gas prices in the international market. The production cost diversified as the energy prices remained on the lower end in the regional market. Other external facets, such as festive holidays and the disruption caused by the occurrence of storm Elliot, impacted the overall market prices of Helium in the regional market.
APAC
During the last quarter of 2022, the price dynamics of Helium in the Asian market moved southwards on the back of demand strength and fluctuating natural gas prices. The supply chain for the product from Qatar was modest throughout the quarter despite the football world cup that was held in the major exporting country (Qatar). The Indian market witnessed a slight decline in the demand for products from the medical and aerospace industries. Few inquiries were made concerning the inventories, which caused a decrease in price in the regional market. Festive seasons occurred during the mid-Q4 in the Indian market leading to fewer market operations and impacting the final prices of Helium.
Europe
Helium prices wavered in Europe during the fourth quarter of 2022 because of ever-changing natural gas prices in the international market. The factors which impacted the final prices were increased energy prices along with disrupted supply chain. The automotive, healthcare, and other industries' stagnating demand, as well as the product's sporadic supply from end-use manufacturing facilities, were the key factors raising the price value. The US's dwindling helium reserves also affected the European helium market, which imports Helium mostly from the US.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, North American helium prices remained on the positive edge as natural gas prices kept soaring. The Natural gas reserves in the US market kept declining as the demand from end-use businesses and the international market increased. This led to an increase in the production cost of Helium as natural gas is the upstream element. The downstream applications of Helium showcased constant demand for the product in the domestic market. The Healthcare sector showcased better demand in the domestic market. Labour shortage hampered the production rate of Helium, consequently raising the prices in the US market.
APAC
Throughout the third quarter of 2022, Asian countries witnessed stagnancy in the price value of Helium owing to increased demand for the product. In the Indian market, the Helium gas suppliers received a constant inquiries about the product, consequently impacting the final prices of Helium in the regional market. India is the major importer of Helium from the US, and hence depleting reserves in the US directly impacted the Asian Helium market, especially India, causing Helium prices to rise stagnantly. The natural gas prices in the Asian market also remained on the upper edge, cumulatively increasing the production cost. Despite this, the prices declined towards the quarter end as the buyers showcased slow demand for the product. Towards the quarter end, the market prices of Helium in the Indian market were observed at USD 63944 per MT, CFR JNPT.
Europe
During the third quarter of 2022, bulk helium prices increased in Europe on the back of rising natural gas prices in the regional market. The sanctions implementation by the Russian government led to natural gas supply shortage in the European market in the third quarter. The main elements driving up the price value were the high demand from the automobile, healthcare, and several other industries and the interrupted supply of the product with end-use manufacturing units. Since the US is Europe's main source of helium imports, the European helium market was also being impacted by the US's declining helium reserves.
For the Quarter Ending December 2021
North America
In North America, the prices of bulk Helium were soaring in the fourth quarter of 2021, backed by robust demand from the downstream industries. Furthermore, depleting Helium reserves in the US, diminished the supply and worsened the situation. In addition, as the industries were in the recovery phase after the hazardous impacts of Hurricane Ida, the rate of supply was sluggish. Altogether, firm demand from the automotive, aircraft, and healthcare industry surged the price value of bulk Helium, further supported by reduced supply. However, depleting Helium reserves are threatening future supply of the product in the global market.
APAC
Asian countries witnessed an upsurge in the price value of bulk Helium during Q4 FY2021, owing to global shortage of Helium and strong demand from the downstream sectors. India is the major importer of Helium from the US, and hence depleting reserves in the US had direct impacts on the Asian Helium market especially India, causing Helium prices to rise exponentially. The pricing trend of bulk Helium went high in the Chinese market as well due to the continuous instability between demand and supply rate. Furthermore, shortage of shipping containers and higher freight charges were other factors contributing towards the rising bulk Helium prices in Asia.
Europe
In Europe, the prices of bulk Helium were rising during the fourth quarter of 2021, and the reason for that was same as it was for other parts of the world. Strong demand from the automotive, healthcare and several other industries and the halted supply were the prime factors augmenting the price value. As Europe majorly imports Helium from the US, shrinking Helium reserves of the US was affecting the European Helium market as well. Furthermore, severe scarcity of natural gas due to transportation delays also persist for Helium availability in the regional market.
For the Quarter Ending September 2021
North America
In North America, Helium market experienced an upward trajectory backed by the constrained availability and firm demand from the downstream sectors during the third quarter. US is a leading producer and exporter of Helium, but its reserves are declining owing to the lack of Helium production from its oil and gas fields thus, US started to import Helium from Qatar to fulfil its domestic needs. In August, due to the arrival of the Ida Hurricane most of the oil and gas refineries closed their production as a part of contingency plan which further added burden on the Helium market in the region. Furthermore, unplanned plant outages such as shut down of Keyes Helium Plant due to a broken turbine in July continued to affect the availability of the product throughout the quarter. Similarly, BLM shut down its crude Helium enrichment facility in the beginning of the quarter for maintenance, all these instances directly influenced the pricing trend of Helium in North America.
Asia
Global shortage of Helium directly influences the Helium market outlook in Asian region. An exponential surge in the prices of Helium was witnessed in the Asian market during the third quarter supported by the tight supplies and sturdy demand outlook. Most of the Helium in India is imported from USA therefore Indian market also experienced tight supply and exorbitant rise in the Helium values during this time frame. Similarly, the global scarcity of Helium also triggered the prices of Helium in China market. In addition, soaring freight charges under shortage of shipping containers further send ripples to the prices of Helium in the region. Bulk Ex Bengaluru Helium prices stood at USD 52438.40/MT in September, showcasing a hike of USD 8059.80 /MT since July. Therefore, Helium charges rose significantly amid extreme shortage and steady demand, in the Asian market during Q3 2021.
Europe
During Q3 2021, Helium prices in Europe followed the same trend as other regions as Europe imports most of the Helium from US, Qatar, and Algeria. During this quarter, import supplies from USA remained tight due to Ida hurricane. The Skikda, a key manufacturer of Helium in Algeria shut down its helium production unit in mid-June for more than a month due to some issues with the LNG plant that supplies feed gas for helium plant which consequently exerted burden on the European market. In addition, soaring freight charges and lack of shipping containers further contributed to the inflation in the pricing trend of Helium. However, the demand from the downstream sectors remained firm throughout the quarter.
For the Quarter Ending June 2021
North America
Global Helium shortage surged the prices in North America during this timeframe, as the demand remained consistently firm throughout the quarter. Post recovery from Covid pandemic, regional end users expected an improvement in the supply activities, which never happened in this quarter. However, more than 10% shortage in supplies was observed from the medical, laboratory and semiconductor segment during this timeframe. In addition, traders are expecting that, on the back of supply shortage, there will be another boom in prices in forthcoming months.
Asia
Asian imports for Helium remained consistently firm throughout the quarter backed by firm demand from downstream medical and laboratory segments. In the Indian market, most of the cargoes were received from USA. Therefore, amidst critical shortage and firm demand, prices of Helium rose effectively during Q2 2021, across Asia. Asia is an ever-growing market, where the demand for Helium is increasing every year. Global shortage has been providing opportunity for Canada to expand their business across the APAC region.
Europe
During Q2 2021, Helium prices in Europe moved in line with the international prices. Prices improved aggressively across the region, despite of having own sources of Helium unlike in Asia. In the meantime, Russia launched the first line of its Amur Gas Processing Plant, which is the one among the total six lines, having a huge potential to extract LNG and Helium. In addition, Russian manufacturers were already aware of the fact that their Helium production level is much lower than that of USA and Qatar, therefore, Russia based companies like Amur planned to expand its capacity to divert some of the demand from USA and Middle East to Europe.
For the Quarter Ending March 2021
North America
In North America, severe shortage of Helium was observed during Q1 2021. As a consequence of the winter storm across the USA gulf coast several plants went through an unplanned shutdown. BLM (Bureau of Land Management) had shut down its Texas based Helium enrichment unit during March for couple of weeks. The company has also planned another shutdown in April 2021. This shutdown is likely to reduce the Helium availability across the region that may support its prices.
Asia
As Asia does not have any source to produce Helium, hence it mostly imports all the Helium required for industrial activities. During the quarter, most of the Helium was imported from Qatar while the Helium market in Qatar was experiencing acute shortage due to major planned and unplanned plant shutdowns. Meanwhile, the demand from the semiconductor sector was rising across the region, especially in South Korea, which supported its prices to rise across the region. Though, the industrial activities in other Asian countries like India, remained on low pace during Q1 2021, the demand for Helium imports in India remained significantly low.
Middle East
In Middle East, Qatar gas is the second largest producer of helium after USA. Qatar extracts Helium with natural gas and that’s why the production of Helium also depends on the production of LNG. In February 2021, Qatar petroleum signed a deal to expand its LNG production capacity from 77 million MT/Year to 110 million MT/Year which is one of the largest single LNG project expansions in the history, which is likely to be completed by end of 2026. This expansion would improve the availability of Helium across the globe. Another news to be heard in the Middle East was the restrictions on transportation of shipments via cargo vessels from the Qatar-based port of Hamad to Jebel Ali on account of ongoing dispute between the UAE and Qatar. The tight supply situation did not see a major change during the quarter.
For the Quarter Ending December 2020
North America
Demand for Helium gradually declined in North America and remained below average for leading companies like Air Liquide, whose Helium sales went down by 15% in Q4 2020. Furthermore, the sales of carrier gases comparatively improved from the previous quarterswith increase in activities in the manufacturing sector. In addition, Blue Star Helium, one of the leading Helium suppliers of USA, has upgraded its P50 grade Helium resources by 16% to 3.5 billion cubic feet during the final quarter and expanded its drilling program from 3 to 5 wells. This mega expansion is expected to add on to the Helium export potential of the region and is likely to improve the local as well as global Helium supply as well.
Asia
After prolonged shortage of Helium supply since July 2020, final quarter of 2020 brought stability in both supply and prices. In India, prices of Helium got stable and returned to normalcy. According to Air Liquide, a global leading gas company, China witnessed a growth of around 3.5% in the overall industrial gas consumption which was due to the rapid recovery in the industrial activity during the final quarter. Besides, market sentiments of large industrial activities like metal fabrications and electronics appreciably improved in South Korea during Q4 which directly impacted the consumption of industrial gases like Helium.
Middle East
In Middle East, Qatar gas is the second largest producer of Helium after USA. Qatar extracts Helium with natural gas and that’s why the production of Helium also depends on the production of Liquified Natural Gas. During October, Qatar’s massive production facilities were shut for maintenance which impacted the global LNG and well as Helium supply and its prices. Later, in December the supply of global Helium came back to normal as several producers resumed their production as the market sentiments appeared optimistic.
