Uranium Eases to 2-Month Low

Uranium futures in the US eased to below $85 per pound in late May, the lowest in nearly two months after holding a narrow range during the period. The cooldown of the speculative rally in the start of the year drove the market's forefront to return to muted levels of spot buying by utilities, which have already been largely reliant on long-term contracts since the war between Russia and Ukraine raised short-term trade uncertainty. Earlier, yellowcake prices were sustained by geopolitical tension driving power markets in major economies to be increasingly volatile, sparking interest in nuclear power by governments and power-hungry AI hyperscalers that develop datacenters. Italy was the latest to express interest to approve a legal framework to restore nuclear power, which has been shunned since the Chernobyl catastrophe. Meanwhile, Meta and Microsoft both signed agreements to gain fresh nuclear capacity for their future AI data center operations.

Uranium futures in the US were above $86.5 per pound, near their highest level in two months as a recovery in broad risk sentiment was combined with the signs of strong longer-term demand in nuclear power. Nuclear power investment has been featured by future operators of power-hungry data centers, driving multiple tech giants in the US to sign contracts for small modular reactors. Meta signed agreements for up to 7.8 gigawatts of nuclear capacity to support their AI services, and Microsoft signed agreements to renew old reactors that exclusively supply over 800 megawatts for their AI datacenter operations. The US government 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.

Uranium futures in the US were steady around $85 per pound, trading at a narrow range since dropping to two-month lows mid-March as the war in the Middle East maintained a degree of low-risk sentiment for major economies, denting speculative assets. Still, yellowcake prices remained firmly higher since the start of the year due to the bullish view on the longer-term adoption of nuclear power. Nuclear power investment has been featured by future 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.