Skyrocket 40%! Strait of Hormuz "Blockage" Disrupts Supply Chain, Helium Concept Rally Partially Rebounds

Why is AI asking about the acceleration of domestic electronic gas localization due to Middle East conflicts?

The helium concept is showing signs of recovery, with Huate Gas rising nearly 10%, and Jinhong Gas, Hangyang Co., Guanggang Gas, and Kaimet also increasing.

According to CCTV News, ongoing Middle East conflicts continue to impact global markets. Iran’s attacks have led to about 17% of Qatar’s liquefied natural gas (LNG) export capacity being interrupted. The conflict in the Middle East has also disrupted the global helium supply chain and is spreading to more industries. Helium is an essential raw material in many sectors, especially in technology fields, widely used in semiconductors, aerospace, electronics manufacturing, and medical imaging. Before this conflict, Qatar supplied over one-third of the world’s helium. The blockage of shipping through the Strait of Hormuz has caused helium prices to rise significantly. Recent estimates from U.S. banks suggest that, depending on market conditions, spot helium prices have already increased by about 40%. Analysts point out that under tight supply conditions, key industries that demand helium tend to prioritize supply security over price, making it easier for suppliers to raise prices.

Huatai Securities’ research report shows that the Middle East conflict affects global helium supply, and increased overseas stockpiling may lead to simultaneous rises in helium volume and prices. According to USGS, Qatar’s helium reserves/production in 2024 are 10.1 million/730 million cubic meters, accounting for 19%/39% of the global total. Since March, supply has been constrained due to the Middle East situation. According to Business Analytiq, the helium price in Northeast Asia in March increased by 13% month-on-month to $147 per kg. In recent years, with the rapid development of semiconductors and aerospace industries, helium demand has continued to grow. Asia-Pacific is the largest demand market, with China, South Korea, and Japan as major consumers. By 2025, 66% of China’s imported helium is expected to come from Qatar. As global helium supply tightens, Chinese and Japanese semiconductor companies may accelerate stockpiling of helium and other electronic gases. This could lead to increased sales volume and prices for helium, benefiting Chinese helium companies and possibly Russian gas companies as well. The industry outlook for electronic gases is expected to improve.

Huatai Securities points out that electronic gases are key raw materials for chips, ranking second only to silicon wafers in wafer manufacturing costs. As chip technology advances toward new storage solutions, advanced processes, and packaging, TECHCET forecasts that the global electronic gas market size in 2026 could grow by 8% year-on-year to $6.8 billion. We believe that with the expansion of storage and wafer factories in China, and given the supply restrictions caused by conflicts in the Middle East, the electronic gas industry in China is expected to accelerate in 2026. In 2024, Chinese listed companies hold a 40% share of the domestic electronic gas market. With increasing demands for independent control and the impact of anti-dumping measures, the localization rate is expected to rise, allowing leading Chinese electronic gas companies to benefit significantly.

Huaxin Securities states that helium is a byproduct of natural gas, and Qatar is a core country for global helium supply as well as China’s key supplier. Even if shipping through the Strait of Hormuz resumes, a global helium shortage of at least 2-3 months is expected.