Helium – Macro View Update
2018 has seen a notable tightening in the helium market, driven by lower than expected global output and potential supply deferments. Forecasting remains difficult, but we believe that the balance is weighted towards a tightening market, especially in the short term ahead of new large-scale supply additions from mega projects in Qatar and Russia, which are planned from 2020 onwards. Assumed annual demand growth of 1.5% will continue to put pressure on the supply/demand balance in the longer term. This should support prices, motivating further development and helium exploration. If mega projects are delayed (very possible), the picture could deteriorate further, pushing the market into a substantial deficit.
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