Global Helium Surplus: Russia's Rise Shakes Up Market
The global helium market is witnessing an unprecedented surplus, a shift driven by geopolitical factors and increased supply from Russia. This glut has led to a ripple effect, impacting manufacturers and trade flows worldwide.
Russia's helium production is surging, predicted to reach 17% of the global market by 2030. This increase, coupled with geopolitical tensions and trade disruptions, has led to a flood of Russian helium into Asia, softening demand for new container builds in the US. This shift has prompted at least one US manufacturer to scale back output at a Pennsylvania facility.
The current surplus has opened opportunities for equipment suppliers to diversify. Gazprom's Amur Gas Processing Plant in eastern Russia has resumed helium shipments, expanding its reach to China, South Korea, Japan, India, and Malaysia. However, this abundance has also led to a downturn in orders for large tanks, resulting in layoffs at Air Products' subsidiary Gardner Cryogenics in Lehigh county. US helium producers are responding by exploring alternatives and innovations such as diversifying supply sources, developing new helium extraction technologies, and improving recycling methods to adapt to the market changes.
The helium market's supply volatility remains a significant challenge, with the current surplus impacting manufacturers and trade flows. As Russia's share of the global helium supply continues to rise, the market's dynamics are expected to evolve further, shaping the future of the industry and its stakeholders.
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