Uranium Increases to 5-Month High
WORLD, Sept. 6 – Uranium, the world leading raw material for nuclear power plant is on steady increase in market value. The product soared to over $60 per pound at the start of September, extending gains for an eighth week to levels last seen in April amid persistent supply risks and bullish long-term demand.
Canada’s Cameco, the world’s second-largest uranium miner, reduced its production guidance for the current year due to challenges in its Cigar Lake mine and Key Lake mill.
The events exacerbated existing supply risks for Western utilities amid political uncertainty in major producer Niger.
Western nuclear fuel producers also grapple with tight supply amid heightened uncertainty over imports of nuclear fuel from Russia, exacerbated by halted shipments of uranium bound for North America in the port of St. Petersburgh, Trading Economics learnt.
Such developments stress the limited capacity of local production streams as Russia is responsible for nearly half of the world’s share of uranium conversion and enrichment, according to the latest data.
Meanwhile, the steady construction of Chinese mega power plants supported demand.