The COVID-19-pandemic-induced halt in the construction of new plants, a series of mine closures in Canada and dwindling secondary supplies fueled a spike in U308 prices in May 2020. However, as of March 31, 2021, the uranium spot price has declined 15.5% to $28.33 since May 31, 2020. With uranium companies reopening their primary mines, there could be a significant improvement in supply conditions this year. As such, uranium prices may slide further in the coming months.
However, with President Biden’s push to reduce carbon emissions and recent failures of traditional green-energy power systems driving investment in new nuclear plants, the uranium shortage seems less likely to occur. Hence, we think the short-term outlook for the metal is uncertain.
This year is expected to witness a reversal of 2020’s gains as COVID-19 production issues end and supply returns to normal without a significant increase in demand. Against this backdrop, shares of […]
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