Trading Economics reported in early September, 2021 that uranium futures skyrocketed above $40 a pound, the highest since November 2014 supported by strong demand and limited supply. Sprott Physical Uranium Trust which began trading on Canada's Toronto Stock Exchange in July has started aggressively buying physical uranium in August tightening the market.
Meanwhile, governments from the U.S. to China see a role for nuclear power in their clean energy programs. The U.S. reportedly seeks to use funds from the infrastructure bill to revive the nuclear power industry, which provides about 19% of the nation’s electricity and has been beset by a wave of reactor closings. On the supply side, the Euratom Supply Agency said that the Coronavirus pandemic has significantly influenced the uranium market as several companies announced in the second quarter of 2020 measures leading to an important decrease in production and related services. Also, Kazatomprom, the world's largest uranium producer decided to keep production flat in 2022 and 2023.
The Primary Use of Uranium
Uranium is a highly dense metal which occurs in most rocks and is mostly used as a fuel in nuclear power plants. The standard contract unit is 250 pounds of U3O8 and is traded on New York Mercantile Exchange. Top uranium producers are Kazakhstan, Canada and Australia. The Uranium prices displayed in Trading Economics are based on over-the-counter (OTC) and contract for difference (CFD) financial instruments. Their market prices are intended to provide you with a reference only, rather than as a basis for making trading decisions. Trading Economics does not verify any data and disclaims any obligation to do so.
[For more, see the rise of uranium in 2021 (here) and in nuclear power (more)].
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