Chinese helium demand has shifted in the last 6-8 months because of Russian supply coming in since Sep'23. YTD to Jun'24, Chinese imports have averaged 72mmcf/month (-13% y/y) and pricing has dropped 15% y/y for the same period. Russian volumes have alone accounted for ~40% of China's imports rising from a meagre 1% in H1'23 and taking substantial market share from Qatar, which was China's primary supplier. There was a drop in volumes from Russia in Apr’24, likely due to maintenance at Gazprom’s Amur facility, but volumes have picked up in May-Jun’24 to its normal levels of 24-28mmcf/month. Chinese import pricing was on the rise during H1'23 in line with global trade flow pricing averaging US$570/mcf. However, when Russia began to export to China, it set its prices ~US$100/mcf lower than those from other regions, using a pricing strategy to gain market share. This is still the case today. YTD to Jun'24, Qatari prices averaged US$513/mcf (-6% y/y) vs Russian prices which averaged US$411/mcf for the same period. Note: China reports rare gases and not helium. We adjust the data by analysing the provincial data. China has not yet reported provincial data for Jun'24, so the above figures may be restated once it is reported.
LHS: Chinese helium imports (mmcf) vs RHS: Chinese helium import pricing (US$/mcf)
