The political upheaval in Kazakhstan and the Russian Ukraine war are driving up uranium prices, but more on that later.
The uranium spot price was $ 48.38/pound at the end of last month, with uranium future prices now at $ 53.05/pound. Uranium is exchanged through private contracts because it is not generally traded like other commodities. The political upheaval in Kazakhstan and the Russian Ukraine war are driving up uranium prices, but more on that later.
The uranium futures price reached an all-time high of $148 a pound in May 2007 before plummeting significantly following the 2011 earthquake in Japan, which caused the Fukushima nuclear power plant to melt down. This raised worries about the safety of nuclear power facilities throughout the world, and several governments began to reconsider their future. Countries such as Germany have opted to phase out nuclear power, announcing that no new nuclear facilities would be built. While uranium has been trading in the $30/pound to $50/pound range for decades, things are finally shifting toward a positive trend for uranium.
According to the World Nuclear Association, Kazakhstan's mines account for more than 45% of global supply, trailed by Australia, Namibia, Canada, and Uzbekistan. It should be mentioned that the world's largest uranium mine is situated in Saskatchewan, Canada, at the Cigar Lake Mine.
The present energy crisis in Europe is the result of persistent political tensions between Russia and Ukraine, which has caused energy prices to skyrocket. The latest energy subsidy measure is only a temporary fix, and Europe is searching for methods to become entirely energy independent soon. On the other side, Russia's conflict on Ukraine, which has included attacks on key Ukrainian nuclear installations, has put the cooling systems at risk. This increases the likelihood of a calamity, which might harm the sentiments of uranium, which is steadily recovering from its decline over the previous decade.