SINGAPORE: Some party and event supply firms in Singapore say helium prices have surged by as much as 40 per cent, as the ongoing conflict in the Middle East disrupts global supply and drives up costs.

Helium is a finite resource typically extracted as a by-product of natural gas production. Major producers include the United States and Qatar, with the latter accounting for about a third of global supply.

Recent attacks on Qatar’s natural gas facilities have disrupted production and exports, tightening supplies of the gas.

Firms say fuel costs are adding to the strain, but for now, they are holding off on raising prices for customers.

SUPPLY DISRUPTIONS PUSH UP COSTS

At party supply company Misty Daydream, co-founder and managing director Tan Jia Jun said new tanks of helium have cost the firm up to 40 per cent more than before the Iran war. 

Previously, much of its stock of the gas came from Qatar. But disruptions linked to the conflict have forced suppliers to look elsewhere, he added.

Another firm, SGballoons, said it was quoted about 27 per cent more per tank of helium when they last made an order around two weeks ago. 

“We were given very short notice from our suppliers, that the helium costs would go up, and that the MOQ (minimum order quantity) went from one tank to four tanks,” said co-founder Ng Wei Sheng.

“What it means for our business is that every time when we turn over our stocks, we pay a premium price, and we need to cater more logistics space to hold that larger quantity of helium tanks,” he added.

FUEL COSTS ADD TO PRESSURE

Beyond supply issues, rising fuel prices are adding to challenges. 

Misty Daydream said delivery costs have been pushed up by soaring diesel prices. 

The company added that overall operational expenses have risen by around 60 per cent since February.

More customers are also opting for delivery instead of self-collection, due to the bulky nature of balloons.

Over the years, deliveries have grown from...