![]() The obvious reason is that uranium is highly radioactive therefore, international laws exist that regulate all aspects of the uranium supply chain, from how it is mined and refined to how it is transported and stored, as well as how it changes hands in the marketplace. While it is possible to trade uranium futures on the NYMEX or through CME Group (NASDAQ: CME), investors can't take actual possession of the metal as they can with precious metals. To truly understand how prices are set, investors need to know how yellowcake is bought and sold. We'll also consider what all this means for the uranium price now and in the future.īefore discovering the highest price for uranium, it's worth looking at how this commodity is traded. If the minimum price for a return to good times in the uranium sector is US$50 to US$60, what was the highest price for uranium? Read on for the answer to that question, as well as a look at what factors have shaped historical prices. Analysts who are bullish on yellowcake, such as Uranium Insider's Justin Huhn and veteran investor and speculator Rick Rule, have continued their calls for a potential uranium market rebound. In 2022, the Russia-Ukraine war, uranium supply challenges related to conversion and enrichment and the realization that nuclear energy is fundamental to combating climate change helped to light a fire under uranium prices, which hit an 11 year high of US$64.61 in mid-April. But in September 2021, uranium market watchers started to see some light at the end of the tunnel as supply cuts from major producers like Kazakhstan's Kazatomprom (LSE: KAP) and Canada's Cameco (TSX: CCO,NYSE:CCJ), alongside the emergence of the Sprott Physical Uranium Trust (TSX: U.UN), set the stage for uranium prices to finally make gains. “We think the cost - or the price that you would need to see in uranium to incent development of any new greenfield project - is somewhere between US$75 and US$100.”įor nearly a decade, uranium prices saw little movement, leaving many investors disappointed. “The costs have gone up significantly,” John Ciampaglia, CEO of Sprott Asset Management, told the Investing News Network (INN) in a late 2022 conversation. The US$50 to US$60 per pound level has often been cited as the tipping point, but with inflation running hot analysts have pointed out that the key price point might be higher - especially when it comes to developing new greenfield uranium projects. In turn, low prices have hamstrung uranium exploration and mine production in recent years, with many major companies placing their operations on care and maintenance until uranium production becomes economically viable. This lack of demand growth coupled with excess supply have weighed heavily on both the uranium spot price and uranium contract prices. ![]() ![]() However, prices have struggled to recover from the 2011 Fukushima nuclear disaster, when a massive earthquake and subsequent tsunami severely damaged several Japanese nuclear reactors.ĭemand for new nuclear reactors fell drastically as public fears over radioactivity risks understandably rose. ![]() Uranium is an important commodity in the energy sector because it provides fuel for nuclear power generation, which supplies 10 percent of global energy needs. Copper Prices Could See "Astronomical Rise" as Supply Concerns Increase.10 Largest Producers of Gold by Country.
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