China produces only 15% of its helium domestically
China’s commerce ministry and its customs agency said in a brief statement that they were imposing a temporary export ban on helium, effective immediately, in accordance with the relevant provisions of the Foreign Trade Law of the People’s Republic of China. The two agencies did not elaborate further on the reasons for the ban.
Helium is crucial for semiconductor manufacturing, the Associated Press reported. The gas is also widely used in the medical sector, including for the cooling of MRI machines.
Since the Iran war began in late February, global helium supply has been disrupted and prices have risen substantially.
China’s domestic production meets only about 15% of its own demand, according to estimates cited in a research note by the consultancy Trivium China. The country imports the remainder, largely from Qatar, which generates roughly one-third of the global helium supply.
Gary Ng, a senior economist at the French bank Natixis, said China is looking to protect its industries as the global supply of helium has become “very tight.”