Global Helium Surplus: US Production Slows, Russian Supply Rises
The global helium market is facing an unprecedented surplus, with the first excess supply in years. This shift has led to significant changes in production and trade flows, particularly in the US and Asia.
Air Products and Chemicals, Inc., a major US manufacturer, has reduced operations at its Pennsylvania facility due to the helium glut. The company, which operates under the subsidiary Air Liquide, has also reported softened helium prices in China, attributed to cheaper Russian volumes entering the market.
Gazprom's Amur Gas Processing Plant in Russia has been ramping up helium shipments to Asia since September 2023, further increasing the global supply. This increase in Russian helium volumes is forecast to raise Russia's share of global helium supply to 17% by 2030.
The current helium surplus has opened opportunities for equipment suppliers to diversify their offerings. However, supply volatility remains a significant challenge for the market, exacerbated by geopolitical tensions, trade disruptions, and embargoes.
Air Products' subsidiary, Gardner Cryogenics, is responding to the downturn in orders for its large tanks by laying off staff. Meanwhile, Russian helium volumes flooding into Asia are softening demand for new container builds in the US. The helium market's future is uncertain, with supply volatility and geopolitical factors set to continue influencing trade flows and prices.
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