Helium prices skyrocket amidst Middle East conflicts! This article explains: what is the impact on global semiconductor and other industries?

Qatar's natural gas processing interruption due to the war with Iran has caused the price of helium to soar, exposing the vulnerability of this small but crucial market that supports multiple industries from semiconductors to medical imaging. According to Phil Kornbluth, President of consulting firm Kornbluth Helium Consulting, since the start of the Middle East crisis, the spot price of helium has doubled, with buyers rushing to purchase to ensure supply. Qatari state-owned energy giant Qatar Energy Company announced last week the suspension of production at its 77 million tons per year liquefied natural gas facility and declared force majeure on the transport of liquefied natural gas. Qatar is the world's second largest exporter of liquefied natural gas. Any interruption in liquefied natural gas production will reduce helium supply as helium is a byproduct of natural gas processing. Qatari Energy Minister Saad al-Kaabi stated last week that even if the conflict ends immediately, it would take "weeks to months" for transport to return to normal. Data from the U.S. Geological Survey shows that Qatar produced around 63 million cubic meters of helium in 2025, while global production is around 190 million cubic meters, with its supply accounting for nearly one-third globally. Aleksandr Romanenko, CEO of market research firm IndexBox, stated, "If the supply disruption continues, the market could experience a monthly shortage of around 5.2 million cubic meters of helium." This disruption is expected to have significant repercussions on a market with almost no spare capacity and limited storage, leaving buyers with very few short-term alternatives. Specifics of the helium market It is worth noting that the operation of the helium market is fundamentally different from most commodities. Most supply is sold through long-term contracts rather than a transparent spot market, meaning that even if supply tightens, price signals typically emerge slowly. This opacity makes price discovery difficult, but signs of tightening supply have already begun to emerge. Anish Kapadia, CEO of market research firm AKAP Energy, stated, "Preliminary signs indicate that spot prices have risen by about 50%. In the event of sustained disruption, prices could spike sharply and potentially retest highs of over $2000 per thousand cubic feet from past shortage periods." Romanenko stated that a 30-day disruption could result in a 10-20% increase in helium prices, while a 60-90 day disruption could push prices up by 25-50%, particularly for buyers without long-term supply contracts. AKAP Energy warned that if the disruption continues, helium prices could exceed $2000 per thousand cubic feet. The physical properties of helium also present another limitationthe gas is typically transported in liquid form and gradually evaporates during transport. Chris Bakker, CEO of helium developer Avanti, stated, "It is a commodity, but it also has a storage window. So when you liquefy itwhich is the common way to transport it globallyyou theoretically have only about 45 days to get it to the end user." Critical industries expected to receive priority supply Industry insiders point out that in the event of further tightening helium supply, suppliers typically prioritize key industries when allocating gas quantities in cases of force majeure. Kornbluth stated that industries such as medical magnetic resonance imaging systems and rockets may receive 100% of their demand, while semiconductor manufacturers may receive 95% of supply. Lower-priority uses such as welding, diving equipment, and party balloons may face greater cuts. In terms of helium consumption in the United States segmented by end-use sector, semiconductors rank second in percentage: This allocation mechanism reflects the rigid demand for helium as a critical production element in areas lacking substitutes. Last week, South Korean ruling party lawmaker Kim Yong-pyo warned that a U.S.-Israel war against Iran could disrupt the supply of critical semiconductor manufacturing materials, using helium as an example. Currently, to mitigate the risk of expansion, major South Korean chip companies including Samsung Electronics and SK Hynix have conducted a comprehensive check on their helium stocks. Industry insiders in South Korea note that finding alternative helium supply in the short term is not easy, with expensive U.S. natural gas being a potential alternative. Major helium supplier Iwatani Corporation in Japan stated that it has maintained stable supply to customers, including semiconductor manufacturers, so far, partly because the company also purchases helium from the United States and holds inventory in Japan and the U.S. Kapadia stated that industrial gas companies purchasing helium from Qatar, such as French multinational Air Liquide, Linde Group, and Air Products and Chemicals, are expected to be among the few companies most affected by this supply shock. Air Products and Chemicals has stated that it is taking measures to ensure ongoing supply, but did not provide further details. Air Liquide stated that it relies on multiple supply sources across different continents and storage caves in Europe. Furthermore, Kornbluth stated that Iwatani Corporation in Japan also faces risks. Kapadia added that if the disruption continues, helium producers outside the Middle East region may benefit. ExxonMobil is the largest helium producer outside Qatar, and Canadian-based North American Helium, as well as smaller developers like Helix Exploration and Blue Star Helium, may see stronger demand. This article is reprinted from the Finance Union, GMTEight editor: Chen Wenfang.