{"id":2492,"date":"2023-10-17T21:09:36","date_gmt":"2023-10-17T21:09:36","guid":{"rendered":"https:\/\/infundpros.com\/investment\/why-uranium-prices-have-climbed-to-their-highest-in-over-a-decade\/"},"modified":"2023-10-17T21:09:36","modified_gmt":"2023-10-17T21:09:36","slug":"why-uranium-prices-have-climbed-to-their-highest-in-over-a-decade","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=2492","title":{"rendered":"Why uranium prices have climbed to their highest in over a decade"},"content":{"rendered":"
\n

Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments still in its \u201cearliest days.\u201d<\/p>\n

The market is \u201cdefinitely in a structural deficit as demand is growing at a 5% annual rate and the current (2023) gap between global production and consumption remains at over 50 million pounds,\u201d Scott Melbye, executive vice president at mining company Uranium Energy Corp.
\n UEC,
\n +2.19%<\/bg-quote>,<\/span>
\n told MarketWatch.<\/p>\n

\n

Weekly spot uranium prices stood at $72.75 a pound as of Oct. 2, the highest since February 2011, according to data from nuclear-fuel consulting firm UxC, and were last at $69 as of Oct. 9. Weekly prices have climbed nearly 45% since the end of last year. <\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n
<\/div>\n<\/figure><\/div>\n

In late August, Jonathan Hinze, president at UxC, told MarketWatch that the market was seeing the \u201cbest set up for nuclear power expansion\u201d that he\u2019d ever seen. That observation still holds, he said.<\/p>\n

It is clear that the uranium supply\/demand balance remains \u201cextremely tight, and it will likely only get tighter\u201d in the coming 12 to 24 months as demand continues to rise, \u201cwhile new supplies are taking more time to materialize, and inventories keep getting drawn down,\u201d he said.<\/p>\n

Read:<\/strong> Uranium prices are still \u2018nowhere near the peak of the last cycle\u2019: Here\u2019s why nuclear energy ETFs could power your portfolio<\/p>\n

Since late August, financial players, including hedge and publicly traded funds active in uranium, have been quite active buying additional uranium off the spot market, said Hinze. These funds \u201cclearly believe that prices are set to rise further, and investors are therefore adding money to their coffers to allow them to buy physical uranium.\u201d<\/p>\n

This is demand that isn\u2019t fully anticipated in the market and this has added to the overall positive demand picture, he said.<\/p>\n

Price pullback<\/h2>\n

Still, Melbye pointed out that uranium prices have pulled back a bit more recently as some traders took some \u201cvery handsome profits on their accumulated long positions.\u201d<\/p>\n

That pullback may have also come as an \u201coverreaction,\u201d he said, to news from Kazakhstan, which produced the world\u2019s largest share of uranium from mines in 2022, according to the World Nuclear Association. Kazatomprom, Kazakhstan\u2019s national operator for the export and import of uranium, announced in late September a return to full production in 2025 to meet global nuclear energy demand. <\/p>\n

Melbye believes there was an overreaction in uranium prices because \u201cthis will ultimately have little impact on Western supply and demand as most analysts had them producing close to those levels by that time in their forecasts.\u201d<\/p>\n

Even with that production assumption, the market is \u201cstill dramatically undersupplied,\u201d and based on Melbye\u2019s estimation, requires eight to 10 new mines starting up globally by 2030, he said.<\/p>\n

And while uranium has been among the best performing commodities year to date, it has only recently reached the level which \u201cincentivizes the world\u2019s best mines,\u201d he said.<\/p>\n

This bull market in uranium investments is \u201cstill in its earliest days,\u201d said Melbye.<\/p>\n

Among the exchange-traded funds, the Global X Uranium ETF
\n URA
\n has gained more than 25% on the year through Friday afternoon, while the Sprott Uranium Miners ETF
\n URNM
\n has added almost 36%. The Sprott Physical Uranium Trust
\n SRUUF,<\/span>
\n a closed-end fund, trades nearly 39% higher.<\/p>\n

Broader new mine developments with significant capital investments in an inflationary environment require higher prices to move ahead, Melbye said. \u201cEven at those levels, the long lead times needed to achieve these necessary start ups could leave the market in a short squeeze for several years.\u201d<\/p>\n

The recent spot market move lower in prices marks a \u201ctemporary pause, and not a peak,\u201d he said. \u201cBuyers should be active on this welcome dip.\u201d<\/p>\n

Supply \u2018challenges\u2019<\/h2>\n

Contributing to supply concerns, a July coup has disrupted mining operations in the country of Niger in West Africa. Niger produced just over 4% of the world\u2019s uranium in 2022, according to World Nuclear News.\u00a0 <\/p>\n

The coup caused borders to close, and major uranium mine and mill operation called Somair has been halted, said UxC\u2019s Hinze. The mine, operated by the French company Orano, sells most of uranium to customers in Europe, he said.<\/p>\n

Meanwhile, Cameco Corp.
\n CCJ,
\n +4.12%<\/bg-quote>,<\/span>
\n one of the world\u2019s largest providers of uranium, said it\u2019s encountered challenges at its mine and milling operation in Canada. The company now expects to produce nearly 3 million pounds of uranium concentrate less this year than previously anticipated, said Hinze.<\/p>\n

\u201cThese production challenges add to the overall view that the supply\/demand balance is very tight and will get even tighter,\u201d he said.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market…<\/p>\n","protected":false},"author":1,"featured_media":2493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-2492","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investment"},"yoast_head":"\nWhy uranium prices have climbed to their highest in over a decade | inFundPros<\/title>\n<meta name=\"description\" content=\"Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=2492\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why uranium prices have climbed to their highest in over a decade | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=2492\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-17T21:09:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697576976_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=2492#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=2492\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Why uranium prices have climbed to their highest in over a decade\",\"datePublished\":\"2023-10-17T21:09:36+00:00\",\"dateModified\":\"2023-10-17T21:09:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=2492\"},\"wordCount\":769,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Investment\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=2492#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=2492\",\"url\":\"https:\/\/infundpros.com\/?p=2492\",\"name\":\"Why uranium prices have climbed to their highest in over a decade | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-10-17T21:09:36+00:00\",\"dateModified\":\"2023-10-17T21:09:36+00:00\",\"description\":\"Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=2492#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=2492\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=2492#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why uranium prices have climbed to their highest in over a decade\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why uranium prices have climbed to their highest in over a decade | inFundPros","description":"Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=2492","og_locale":"en_US","og_type":"article","og_title":"Why uranium prices have climbed to their highest in over a decade | inFundPros","og_description":"Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments","og_url":"https:\/\/infundpros.com\/?p=2492","og_site_name":"inFundPros","article_published_time":"2023-10-17T21:09:36+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697576976_social.jpeg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=2492#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=2492"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Why uranium prices have climbed to their highest in over a decade","datePublished":"2023-10-17T21:09:36+00:00","dateModified":"2023-10-17T21:09:36+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=2492"},"wordCount":769,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Investment"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=2492#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=2492","url":"https:\/\/infundpros.com\/?p=2492","name":"Why uranium prices have climbed to their highest in over a decade | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-10-17T21:09:36+00:00","dateModified":"2023-10-17T21:09:36+00:00","description":"Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=2492#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=2492"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=2492#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Why uranium prices have climbed to their highest in over a decade"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/2492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2492"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/2492\/revisions"}],"predecessor-version":[{"id":2494,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/2492\/revisions\/2494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/2493"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}