SINGAPORE, April 20 — Party and event suppliers in Singapore are grappling with a sharp spike in helium prices, with some firms reporting increases of up to 40 per cent as conflict in the Middle East disrupts global supply chains, CNA reported.

Helium, a finite resource extracted as a by-product of natural gas production, is heavily reliant on a handful of producers, notably the United States and Qatar. 

The Gulf state accounts for about a third of global supply, leaving the market vulnerable to geopolitical shocks.

Recent attacks on Qatar’s natural gas facilities have disrupted production and exports, tightening supply and sending prices higher.

At party supply firm Misty Daydream, co-founder and managing director Tan Jia Jun said new helium tanks now cost as much as 40 per cent more than before the Iran-linked conflict. Much of the company’s previous supply came from Qatar, but disruptions have forced suppliers to source the gas elsewhere.

The squeeze is being felt across the industry. SGballoons said it was quoted about 27 per cent more per tank when it last placed an order 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 to the Singapore-based media organisation.

“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.”

Rising fuel prices are compounding the pressure. Misty Daydream said soaring diesel costs have pushed delivery expenses higher, contributing to a roughly 60 per cent rise in overall operating costs since February.

Demand patterns are also shifting, with more customers opting for delivery instead of self-collection due to the bulky nature of balloon arrangements. Deliveries now account for about 80 per cent of orders, up from 20 per cent previously, Tan said.

Despite mounting costs, firms say they are holding off on raising prices for now, opting instead to absorb the increases.

Both companies are accelerating efforts to diversify away from helium. Misty Daydream has doubled its range of non-helium products, which now make up about 20 per cent of its offerings, while SGballoons has cut helium-based products to 40 per cent from nearly full reliance five years ago.

For now, businesses are taking a wait-and-see approach. But if supply pressures persist, the cost of celebrations may soon rise.