The story so far: On July 10, China’s Ministry of Commerce and General Administration of Customs imposed an immediate but temporary ban on helium exports. By 4:30 pm IST that day, Beijing had released no further details on the reasons or the measure’s reach.
Is China a major helium producer?
China meets over 80 percent of its helium demand through imports and accounts for just 1.6 percent of global output. The ban follows prolonged supply pressure from Russia’s export limits, which require prime ministerial approval through 2027, and risks linked to tensions in West Asia.
The leading helium suppliers are the United States (43 percent of supply), Qatar, Russia, Canada, and Algeria. In 2024 the U.S. sold its Federal Helium Reserve to the Messer Group, removing a buffer against shocks such as those from U.S.-Iran tensions. The following year, a congressional committee examined Messer’s Chinese ties, raising the possibility of reciprocal actions that China’s new ban may represent.
Qatar supplies 33 percent of demand, mainly to Asia. After tensions with Iran rose, one-third of world helium output became concentrated near the Strait of Hormuz. China’s restriction could safeguard supplies for its semiconductor and medical industries.
How is helium obtained?
Helium is the second-lightest element and forms naturally through radioactive decay of uranium and thorium deep in the crust. Over millions of years it collects in natural-gas reservoirs and is extracted with them. Processing begins only when helium reaches at least 0.3 percent by volume. Separation relies on its distinct boiling point. Recovery from LNG plants or air yields negligible amounts. Commercial helium is typically 99.997 percent pure.
What is helium used for?
With a boiling point of minus 269 °C and low chemical reactivity, helium serves as a coolant for MRI magnets, semiconductor wafers, and some quantum-computing devices. Its small atoms make it effective for leak detection. It also cools optical-fiber glass and prevents bubbles during manufacture. Space agencies use it to pressurize rocket fuel tanks, and it fills balloons and airships.
U.S. Geological Survey data show laboratory uses at 22 percent of demand, followed by controlled atmospheres and semiconductors (17 percent), lifting gas (17 percent), MRI scanners (15 percent), aerospace (9 percent), and leak detection (5 percent).
How much does helium cost?
In June 2026, spot prices for high-purity helium in Northeast Asia reached $150–205 per thousand cubic feet, nearly double late-2025 levels. Supplier Airgas declared force majeure and added surcharges. Liquid helium is costly to store and ship because it liquefies only at –269 °C. Purification, storage, and transport facilities require major investment; large plants exceed $100 million, underground salt caverns more than $200 million. Operational expenses add further costs.
