Taiyo Nippon Sanso Corporation (TNSC) has decided to raise the shipping price of helium by an average of more than 20% from shipments in February 2025.
TNSC procures helium gas raw materials based on long-term contracts spanning 10 to 20 years, primarily in the United States, Qatar, and other producers. To ensure a stable supply of helium, TNSC is working to strengthen its supply chain by purchasing raw materials from various suppliers and finding new ones. In the course of these efforts, tightness in the global market has driven up procurement raw material costs, which led TNSC to adjust shipping prices in August 2022 and February 2023.
Since then, the market crunch has eased compared to the period, eliminating the need for high-cost spot procurement, but the market crunch between Fiscal 2022 and 2023 has sent long-term contract prices with new suppliers soaring. In addition, the cost of helium gas raw materials has been rising sharply due to the rise in price index-linked long-term contract prices in countries with relatively high inflation rates and the weak yen since the TNSC's previous price revision.
This rise in helium raw material costs is beyond the reach of corporate efforts alone, making it difficult to maintain current prices. Therefore, the TNSC has decided to raise prices in the future. It will also seek an understanding of price revisions to ensure that the TNSC continues to secure valuable resources amid global competition.