Party suppliers in Singapore see helium prices up by 40% amid Middle East conflict
Supply disruptions and higher fuel costs are driving up helium prices, as businesses adapt with new products while holding off passing costs to customers.
Helium balloons at a party supplier in Singapore. Businesses say fuel costs are adding to the strain, but for now, they are holding off on raising prices for customers.
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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 about 20 per cent of orders to around 80 per cent, Mr Tan said.
Despite the rising costs, businesses told CNA they are, for now, absorbing the increases rather than passing them on to customers.
LOOKING FOR ALTERNATIVES
Both firms are also accelerating efforts to diversify their offerings and reduce reliance on the gas.
Helium prices have already been rising in recent years following Russia’s war in Ukraine, which has tightened supplies from Russia, a key producer.
Misty Daydream said it has doubled its range of non-helium products over the past year, now making up about 20 per cent of its offerings.
Some designs use air-filled structures and creative assembly to mimic the look of floating balloons. However, such products can be more labour-intensive, meaning prices remain similar to helium-based options.
SGballoons has similarly been turning to alternatives – helium products now make up just 40 per cent of its offerings, down from nearly 100 per cent about five years ago.
It is also working with suppliers in Japan, China and the US to develop balloon materials that require less helium while maintaining lift, and improving its logistics, such as planning delivery routes more efficiently to cut transport costs.
For now, party businesses are taking a wait-and-see approach on pricing. But if costs continue to rise, consumers may eventually have to pay more for celebrations.
