Concerns Post Helium Shortage 4.0 (HS 4.0)

As discussed in my previous blog, HS 4.0 and the three earlier periods of supply disruption and associated price increases over the past 16 years were not linked to global reserves or resources.  Shortages have arisen from industrial accidents, fires that destroyed extraction plants, unplanned maintenance, geopolitical events, and poor US Federal Helium Reserve management.  Estimated reserves and resources are continually increasing.

Interestingly, under Donald Trump, the US government imposed import tariffs on electronic goods and components vital to the industry this week.  This sector began recovering from a year of decreased demand and production.  As discussed previously, the electronics industry is the single largest consumer of helium, accounting for about 25% of total global consumption on average before 2024.  This period saw a relative 40% drop (10% of total global demand) in its helium requirement.  Therefore, it is uncertain how resilient the sector will be to the imposition of higher costs.  In general, Q1 of 2025 is currently realising a plentiful global supply.  China is now the primary destination for the surplus Russian production caused by sanctions.  This influx of cheap helium into the Chinese market has caused market turmoil, including a price deflation impact.

One of the biggest challenges in global markets is the availability of the helium industry standard 11,000 US ga liquid gas shipping tanks empty and in the right place at the right time.  This makes it harder to manage fast responses to changing logistics requirements.

In January, Exxon Mobil, the world’s second-largest supplier after Air Liquide, announced a 20% price increase, which has yet to affect the delivery price to analytical laboratories such as Butterworth.  Throughout HS 1.0 to HS 4.0, Butterworth has noticed large price increases but has always received gas quantities as ordered.  Has anyone experienced an actual shortage that has affected analytical operations?

Frank Judge – Consultant Chemist – Chromatography