Praxair has announced a 25 per cent increase in helium gas prices in China.
The increase will be effective on 15 December 2006 unless otherwise permitted by the terms and conditions of customer contracts.
The increase is being implemented in response to strong demand as well as continued fuel, logistics and other operational costs.
The pricing structure
The pricing structure of helium is to do with the cost of crude helium before it is refined and liquefied rather than determined by market dynamics.
Most helium is associated with natural gas fields and therefore the crude availability is not generally owned by industrial gas companies but by the oil and natural gas companies.
These companies set the initial pricing structures by demanding value for the crude product before refining.