Helium prices soar amid Middle East conflict! An in-depth analysis: what is the impact on global semiconductor and other industries?

Qatar’s natural gas processing interruption caused by the Iran war has led to a surge in helium prices, exposing the fragility of this small but critical market that supports multiple industries—from semiconductors to medical imaging…

According to Phil Kornbluth, President of consulting firm Kornbluth Helium Consulting, since the Middle East crisis began, spot helium prices have doubled, and buyers are rushing to secure supplies.

Last week, Qatar’s state energy giant QatarEnergy announced a halt in its 77 million tons per year liquefied natural gas (LNG) facility production and declared force majeure on LNG transportation. Qatar is the world’s second-largest LNG exporter. Since helium is a byproduct of natural gas processing, any disruption in LNG production reduces helium supply.

Last week, Qatar’s Minister of State for Energy Affairs Saad al-Kaabi stated that even if the conflict ends immediately, normal transportation recovery would take “several weeks to months.”

Data from the U.S. Geological Survey shows that Qatar produced about 63 million cubic meters of helium in 2025, while global production was approximately 190 million cubic meters, with Qatar’s share nearly one-third. Market research firm IndexBox CEO Aleksandr Romanenko said, “If the disruption continues, the market will effectively lose about 5.2 million cubic meters of helium each month.”

This disruption will undoubtedly have a significant impact on a market with almost no spare capacity and limited storage, leaving buyers with few short-term alternatives.

The uniqueness of the helium market

It is worth noting that the helium market operates very differently from most bulk commodities.

Most supplies are sold through long-term contracts rather than transparent spot markets, meaning price signals tend to be slow to emerge even when supplies tighten.

This opacity makes price discovery difficult, but signs of supply tightening are already emerging.

Market research firm AKAP Energy CEO Anish Kapadia said, “Initial signs indicate spot prices have already increased by about 50%. In case of continued disruption, prices could spike sharply and test past shortages where prices exceeded $2,000 per thousand cubic feet.”

Romanenko noted that a 30-day disruption could raise delivered helium prices by 10% to 20%, while a 60 to 90-day outage could push prices up by 25% to 50%, especially for buyers without long-term supply contracts.

AKAP Energy warned that if the disruption persists, helium prices could surpass $2,000 per thousand cubic feet.

The physical properties of helium add another layer of limitation—this gas is usually transported in liquid form and gradually evaporates during transit.

Avanti CEO Chris Bakker said, “It’s a commodity, but it also has storage windows. Once liquefied—which is the usual global transportation method—you theoretically have only 45 days to deliver it to the end user.”

Key industries are expected to prioritize supply

Industry insiders point out that if helium supplies tighten further, suppliers typically prioritize critical industries during force majeure allocations.

Kornbluth said industries like medical MRI systems and rockets might receive 100% of their needs, while semiconductor manufacturers could get 95%. Lower-priority uses, including welding, diving equipment, and party balloons, could face larger cuts.

U.S. helium consumption by end-use sectors shows semiconductors as the second-largest (percentage):

This allocation mechanism reflects helium’s role as a critical production factor with absolute rigidity in sectors lacking alternatives.

Last week, South Korean ruling party lawmaker Kim Young-pyo warned that the US-Israel conflict with Iran could disrupt key semiconductor manufacturing materials, citing helium as an example.

Currently, to mitigate risks, major Korean chip companies like Samsung Electronics and SK Hynix are conducting comprehensive checks on their helium inventories. Industry insiders say that finding alternative helium supplies in the short term is difficult, and expensive US natural gas might become an alternative.

Japan’s major helium supplier Iwatani Corporation stated that it has maintained stable supplies to customers, including semiconductor manufacturers, partly because it also sources helium from the US and maintains inventories in Japan and the US.

Kapadia said that industrial gas companies sourcing helium from Qatar—including Air Liquide, Linde, and Air Products and Chemicals—are expected to be among the most affected by this supply shock.

Air Products and Chemicals has said it is taking measures to ensure continuous supply but did not provide further details. Air Liquide relies on multiple suppliers across different continents and its storage caverns in Europe.

Additionally, Kornbluth noted that Japanese Iwatani Corporation also faces risks.

Kapadia added that if the disruption continues, helium producers outside the Middle East could benefit. ExxonMobil is the largest helium producer outside Qatar, while Canadian-based North American Helium and smaller developers like Helix Exploration and Blue Star Helium may see increased demand.

(Source: Cailian Press)