Uranium Erases Year-Start Rally

Uranium futures in the US fell to $85 per pound in March, its lowest in two months, despite the upswing in coal prices to reflect concerns that the year-start rally may have been overdone. Still, yellowcake prices remained slightly higher since the December on the bullish view of demand. Recent developments in nuclear power investment have been headlined by operators of power-hungry data centers, driving multiple tech giants in the US to sign contracts for small modular reactors. The US cut regulations on the construction and permits for uranium converters and enrichers and announced deals for the construction of new power plants. These include a partnership with Cameco, which approved the development of Westinghouse reactors, and a fresh $2.7 billion in contracts to Centrus and two other reactors and enrichers to offset the shun of supply from Russia following sanctions on their nuclear fuel.

Uranium futures in the US were at $88 per pound, trading in a narrow range since pulling back from the two-year high of $101.5 in late January, tracking the drop for industrial commodities as the dollar rebounded and traders eased concerns of dollar debasements. Still, yellowcake contracts remained nearly 10% higher since the start of the year on the bullish view of demand. Recent developments in nuclear power investment have been headlined by operators of power-hungry data centers, driving multiple tech giants in the US to sign contracts for small modular reactors. The US cut regulations on the construction and permits for uranium converters and enrichers and announced deals for the construction of new power plants. These include a partnership with Cameco, which approved the development of Westinghouse reactors, and a fresh $2.7 billion in contracts to Centrus and two other reactors and enrichers to offset the shun of supply from Russia following sanctions on their nuclear fuel.

Uranium futures in the US fell to $92 per pound from the near two-year high of $101.5 after a fresh increase in global supply momentarily outweighed the view of soaring growing demand expectations that carried prices in recent quarters. The Uzbek Atomic Energy Agency boosted its annual production of Uranium to 7,000 tonnes last year, well above market expectations, and increased reserves estimates. Still, yellowcake prices remain sharply higher on expectations that nuclear power capacity will continue to increase to match datacenter and electrification demand. The US government cut regulation on permits for uranium converters and announced deals for the construction of new plants. These include a partnership with Cameco, which approved the development of Westinghouse reactors, and a fresh $2.7 billion in contracts to Centrus and two other reactors and enrichers to offset the shun of supply from Russia following sanctions on their nuclear fuel.