While the domestic demand for helium is on the way toward recovery, it seems that the supply side is now suffering from the prolonged difficulty in procurement due to the worsened recycling rate of containers. The inventory condition of all suppliers still remains in a difficult position caused by the short supply of helium.

Applications to welding are deemed to account for about 12% of the demand for helium. The production of aluminum LP cylinders out of such applications appears to be also affected by the short supply.

On April 12, SK Cylinder of LP cylinder manufacturer who also produces welded aluminum cylinders, reported in its website, premising helium supplier’s information of possible disability to deliver helium in and after May, that there is a possibility to discontinue temporarily its delivery of ordered aluminum LP cylinder at any requested timing until establishing an alternative way though trying at a rapid pitch.

Regarding the current situation, the sales division of the company describes, “LP gas distributors seem to have some stock saving, and we ourselves have finished planning of production for May. We keep trying to find out an alternative way to replace welding.

Likewise, Chugoku Kogyo of LP gas cylinder manufacturer who also produces aluminum welded cylinder said, “We also have suffered a tight supply of helium since the end of last year and experienced a one month suspension of production.”

At present we are able to make production on a tightrope walking condition, but any further delivery is guaranteed. We think the situation will last for the time being.”

In addition, SK Cylinder is planning to increase the prices of all types of cylinders by about 10% with effect from the delivery on July 1 on account of the price hikes of each gas, painting cost and transport expenses for welding as well as the rising prices of steel materials, aluminum materials and welding wires.

The company said, “We also revised our prices by 12 to 13% last year, but it was quite inevitable due to the cost hike of steel materials. The steel material manufacturers were requiring to increase their prices every quarter term but we negotiated hard to make it every half term of the year. At the same time, we are going to ask for revising our price of bulk storage tank.”