Strait of Hormuz Closure Impacts Helium Market More Profoundly Than Oil
The closure of the Strait of Hormuz, combined with the shutdown of helium production in Qatar—which accounts for approximately 30% to 38% of the global helium supply—has created significant disruptions across the technology and healthcare sectors.
Currently, over 200 containers of liquid helium are stranded in the Persian Gulf region. Unlike many other commodities, liquid helium is extremely volatile and must be maintained at an ultra-low temperature of -268.9°C. During transit or storage, helium continuously "boils off" into gas, which drastically reduces the volume of usable helium that actually reaches its destination.
This shortage is especially critical because helium has no practical substitute in several advanced technological applications, such as semiconductor manufacturing, where it is essential for cooling during wafer fabrication.
Most plants are estimated to have only about one week’s worth of helium inventory remaining. This shortage is particularly impacting major manufacturers like Samsung and SK Hynix in South Korea, as well as Taiwan’s TSMC.
Since March, spot prices for helium have doubled. Although contract prices have remained relatively stable, they are expected to increase by 35–40% during upcoming renegotiations. This price surge is likely to trigger widespread shortages and increased costs across numerous products reliant on helium.
