2 p.m.
Departments,
Please be aware of recent increases in helium gas pricing. As explained in the email
below from Shannon Kruse, helium pricing has increased approximately 10% as of March 1,
2014.
The University of Texas Supply Chain Alliance pricing continues to be calculated on a
contracted 50% discount off Airgas Published pricing, however factors identified below
have resulted in increases to the Airgas published price list for helium.
Please contact Purchasing at X4060 with any questions or concerns regarding this
increase.
Thank you,
Lane Brinson, C.P.M.
Assistant Director of Purchasing
From: Shannon Kruse [mailto:sckruse@cuevasdistribution.com]
Sent: Friday, April 04, 2014 3:04 PM
To: Shannon Kruse
Cc: tom.settle@airgas.com<mailto:tom.settle@airgas.com>
Subject: Helium price increase at UTSA
Cuevas/Airgas is giving notice of an upcoming price increase on all helium effective
3-1-2014. Here is a brief explanation as to why the increase is necessary:
You may be aware that the U.S. Bureau of Land Management (BLM) recently announced a 13%
increase in the price of crude helium effective January 1, 2014. This increase influences
other sources around the world as well as many of which are tied in some way to the BLM
benchmark price. In addition, the BLM, provider of approximately 35% of the world's
helium supply, has been allocating product since May 2011. Our suppliers, in turn, have
placed us on frequently changing allocations causing significant uncertainty in the
overall helium supply chain.
In addition to rising product costs, the cost of moving product from where it is available
to where it is needed is ever rising. These higher costs are further compounded by the
unpredictability of the supply chain. With the shortage of supply, any variation in
availability adds uncertainty to the process and impacts the ability to suitably plan,
further adding cost.
For these reasons, we are implementing a 10% price increase on helium effective March 1,
2014.
In order to secure competitive pricing and product reliability for our customer base,
Airgas has taken a proactive approach to locating and distributing replacement helium at
significant expense to the company. We will continue to seek new sources as well as ways
to mitigate these higher costs in the pursuit of a stabilized helium supply chain.
Shannon Chavera-Kruse
Shannon Chavera-Kruse
Cuevas Distribution, Inc.
P.O. Box 161006
Fort Worth, Texas 76161
512.989.0085
sckruse@cuevasdistribution.com<mailto:sckruse@cuevasdistribution.com>