The 'golden gas' under the flames of war: how foreign wars can ignite helium prices
Helium, a "lazy gas" mainly used to fill balloons in the eyes of ordinary people, is actually the undisputed "golden gas" in modern industry. From the cooling of superconducting magnets in nuclear magnetic resonance imaging machines, to etching and cooling in semiconductor chip manufacturing, to critical applications in fiber optics and aerospace, helium plays an indispensable role. However, this strategic resource that heavily relies on natural gas extraction has long been concentrated in a few countries for global supply. When war ignites in the Middle East, this fragile supply balance is instantly disrupted.
Shipping 'lifeline' hit, global helium supply crisis
At the beginning of 2026, with the continued escalation of geopolitical conflicts in the Middle East, the global helium market experienced a sudden 'earthquake'. According to data from market research institutions, as of March 12, 2026, the price of domestically produced helium tubes has increased by 24.22% in just two weeks. The price increase on some retail ends is even more exaggerated, with some companies even seeing a price increase of over 50% for 40L high-purity helium gas.
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The direct trigger for this round of price surge is the interruption of shipping in the Strait of Hormuz and the shutdown of the Qatar helium plant. Qatar is the world's second largest exporter of liquefied natural gas and also one of the "Big Three" in the global helium market. According to data from the United States Geological Survey, Qatar produced approximately 63 million cubic meters of helium gas in 2025, accounting for nearly one-third of the global total production (approximately 190 million cubic meters). Due to helium being a byproduct of natural gas processing, Qatar's state-owned energy company has announced the suspension of production at its liquefied natural gas facilities, directly cutting off nearly 40% of the world's helium transportation channels.
Butterfly Effect: Price Increase Notices from Qatar Factories to Chinese Enterprises
This supply crisis, which is far away in the Middle East, quickly spread to the Chinese market through a complex global supply chain. Nearly 40% of China's helium imports rely on Qatar, and the emergence of a supply gap has caused domestic specialty gas companies to feel the pain.
In the face of interviews with reporters, the responses of multiple A-share listed companies revealed the true state of the market. The relevant business personnel of Walter Gas stated that before and after the outbreak of the US Iran conflict, the price of the company's 40L high-purity helium gas has increased by about 20% cumulatively, and the validity period of the quotation is very short. "This quotation is only valid for this week, and we cannot confirm whether the price will change next week at present. The retail price of high-purity helium gas used for semiconductor cooling has increased by over 50%.
However, not all companies have been swept up by this wave of price hikes. The complexity of the helium market lies in its trading model, which is primarily based on long-term contracts rather than transparent spot markets, resulting in inconsistent responses to price signals.
The supply gap will continue, but the historic surge is difficult to reproduce
How long will this supply crisis caused by the war last? The market generally maintains a cautious attitude. The Minister of State for Energy Affairs of Qatar stated that even if the conflict ends immediately, it will take "weeks to months" for transportation to return to normal. Market research firm IndexBox estimates that if supply disruptions continue, the market will actually be missing approximately 5.2 million cubic meters of helium per month. The related impact will cause substantial helium resource shortages in the Chinese and even global markets from March to May.
Although the pattern of tight supply is difficult to change in the short term, the industry generally believes that this price trend will not repeat the crazy scene of 300% -400% price rise in the early stage of the Russia-Ukraine conflict in 2022. The reason is that, on the one hand, there has not been a significant surge in domestic downstream demand, and the driving force for price increases is relatively insufficient; On the other hand, domestic helium production capacity is rapidly increasing. PetroChina's LNG tail gas helium extraction projects in Xinjiang, Inner Mongolia, and other regions have achieved significant volume increases. Coupled with stable gas sources from Russia, they are now able to meet some of the domestic market demand and play an important role as a "ballast stone".
The semiconductor industry experienced a false alarm, but the warning has not been lifted
As an important application area of helium gas, how has the semiconductor industry performed in this price surge? The answer is: the short-term impact is limited, but the long-term warning has not been lifted.
From an application perspective, Qatari helium gas is favored by high-end semiconductor customers due to its high purity and good quality. It is mainly used for temperature control and process assurance in processes such as wafer manufacturing, photolithography, and etching. However, for downstream sealing, testing, and storage enterprises, although helium is indispensable, its proportion in the overall cost structure is extremely low. Enterprises such as Baiwei Storage and Yongsi Electronics have all told reporters that the increase in helium prices has not had a significant impact on their companies, as helium is a consumable rather than a core raw material. Tongfu Microelectronics also believes that there has not been a significant impact overall, and there is a certain lag in price transmission.
However, beneath the surface calmness, there are hidden currents surging. The founder of Steno Research, a market research company, pointed out that TSMC and Hynix are highly dependent on helium gas from Qatar (possibly up to 40-50%), which means they may have to rely on reserves to support them in the coming months, and may even become a bottleneck in the entire process of artificial intelligence development. South Korean chip companies Samsung Electronics and SK Hynix have conducted a comprehensive inspection of their helium inventory status, as it is not easy to find alternative supplies of helium in the short term.
In this game of supply allocation, different industries have vastly different priorities. Industry insiders point out that in the event of force majeure, industries such as medical MRI systems and rockets may receive 100% of demand, semiconductor manufacturers may receive 95% of supply, and non critical uses such as welding, diving equipment, and party balloons will face the strictest cuts. This cruel prioritization deeply reveals the true value of helium in maintaining modern high-tech civilization.
The impact of foreign wars on helium prices is essentially a profound warning about "resource geography" and "supply chain resilience". When a country's industrial lifeline is overly concentrated in a region of geopolitical turmoil, distant wars can ignite local inflation at any time. For China, this surge in helium prices is both a stress test and an opportunity for transformation. Diversified import channels, continuously improving domestic production capacity, and mature supply chain management of downstream enterprises have jointly built a firewall to resist international risks. However, in today's profoundly reshaped global geopolitical landscape, any reliance on key mineral resources could become the next Achilles' heel to be attacked.
