Market Reacts to US Ban on Russian Nuclear Fuel
Uranium Prices Hold Steady Near One-Month Low
Uranium prices remained at $90 per pound, close to the one-month low of $89 observed on 31st May. This stability comes as markets assess the implications of the recent US ban on Russian nuclear fuel imports. President Biden recently signed a bill prohibiting the import of enriched uranium from Russia, which accounts for a quarter of the US supply and roughly half of the global supply according to recent estimates.
Global Supply Concerns Persist Amid Geopolitical Tensions
Initially, uranium prices surged with the announcement of Washington’s ban and the potential for Moscow to impose stricter export restrictions in retaliation. However, the inclusion of flexibility and waivers in the legislation has somewhat mitigated the immediate impact on supply constraints.
Despite this legislative cushioning, production downgrades from major uranium producers in Canada and Kazakhstan, combined with optimistic long-term demand forecasts, have maintained some of the price gains seen in late 2023. Moreover, the global nuclear power landscape is poised for significant expansion, with the US and 20 other countries unveiling plans to triple their nuclear power capacity by 2050.
China is at the forefront of this nuclear energy push, constructing 22 out of the 58 new reactors currently being built worldwide. Japan has also renewed its nuclear reactor development plans, further contributing to the bullish outlook for uranium demand.
