I had two questions I asked Stef:
1. Why is price of Helium so opaque.
2. Why the article in the Daily Investor was questioning the 600 mcf price.
His reply:
Hi AdrianDespite claims to the counter, always open to taking questions!1) 98% or so of the helium market is controlled by 6 companies who buy upstream and sell downstream. None of these entities have the mandate to invest upstream (addressing the elephant of why Linde doesn't just buy us). They control the market through the use of long term take or pay upstream and long term supply agreements, making the margin in the middle with very limited risk2) See some independent views. Note the Edelgas report speaks to helium price upstream or $500. By the time it is liquefied, you add 200 and then transport, you get to the numbers in the second report (down stream) of over 1,000The numbers in that article were based on US federal helium, and the contracts associated with that pricing are seriously skewed and opaque. Hope this helpsCheersStef
Stefano answers community questions, page-123
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