The price of uranium hit $92.50 per pound, its highest level since 2007 as supply chain issues, nuclear expansion plans, and geopolitical tensions, have all combined to create a dramatic surge in uranium prices. The price per pound has more than doubled since Russia’s invasion of Ukraine in Feb. 2022.
The uranium market is expected to continue heating up, and prices could hit over $100, analysts from Bank of America and Berenberg Bank have projected.
The global demand for uranium has outstripped supply as key producers have faced problems. Niger’s uranium exports plummeted after a coup last year, and it is unclear when or even if the country will be able to resume exports at the same level. The country was the EU’s second largest source of natural uranium in 2022. Kazakhstan, the world’s leading uranium producer, has also faced issues, as a shortage of the sulfuric acid used for extraction has suppressed production levels. Cameco, one of the world’s biggest producers, has said it may have to buy uranium to meet its obligations to customers. But high uranium prices mean that producers have incentives to ramp up production and open new mines, a report from the asset manager Sprott said.
