The Bullish Ascent Of Uranium

Writer: Kevin Dwyer CEO,Head Trader
January 11, 2024

NUCLEAR RE-EMERGENCE: URANIUM PRICES SOAR TO 15-YEAR HIGH

UNPRECEDENTED DEMAND DRIVES URANIUM UPSURGE

January witnessed uranium prices ascend to an impressive $92 per pound, the pinnacle since 2007, propelled by robust demand signals and escalating supply uncertainties. The erratic nature of fossil fuel prices, coupled with the resolve to slash carbon emissions aggressively, has ushered in a global consensus. The United States, joined by a cohort of 20 nations, has unveiled plans to augment nuclear power capacity threefold by the mid-21st century.

GLOBAL NUCLEAR AMBITIONS INTENSIFY

Leading the nuclear resurgence, China is forging ahead with 22 new reactors out of 58 under construction worldwide. Japan has rekindled its nuclear projects to bolster output, and Finland's recent endeavour marks Europe's inaugural nuclear inauguration in nearly two decades. In response to this burgeoning nuclear renaissance, utility companies have secured contracts worth 160 million pounds of U3O8 in 2023—surpassing any annual commitment since 2012.

SUPPLY RISKS AMID POLITICAL TENSION

The geopolitical landscape adds a layer of complexity, with Western utilities eschewing Russian uranium in light of the Ukraine conflict. Concurrently, American officials are inching towards a complete embargo on imports from the leading nuclear fuel supplier, exacerbating supply-side pressures. The sector stands at a crucial juncture, balancing the imperatives of energy security and geopolitical strategy.

OUR VIEW

The global trading industry is buzzing as the prices of Uranium continue to rise. Since the start of 2024, there has been an increase of USD 1.50/LBS or 1.65%. Mine$tockers feels that prices will rise further and reach 93.16 USD/LBS by the end of the quarter. Many analysts foresee a steady price rise and predict it to reach 99.94 USD/LBS in the coming year.

COMING SOON

We will feature the Uranium stocks we follow to exploit the uranium bull market.

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