A sea of red for ASX uranium shares. Is the run over?

ASX uranium shares have enjoyed some monstrous gains in the past month thanks to skyrocketing uranium prices. Between 31 August and 16 September, the largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) surged almost 120% from 51 cents to 9-year highs of $1.120. Prospective explorers such as Deep Yellow Limited (ASX: DYL) , Peninsula Energy Ltd (ASX: PEN) , 92 Energy Ltd (ASX: 92E) and Boss Energy Ltd (ASX: BOE) delivered similar triple digit gains over the same period.

But more recently, ASX uranium shares have been running out of steam, many of which have declined 20-30% from recent multi-year highs. Why are ASX uranium shares tumbling?

The sharp re-rate across the uranium sector was fueled by Sprott’s Physical Uranium Trust, a Canadian investment fund focused on aggressively buying physical uranium off the spot market.

Uranium is an illiquid commodity that does not trade on an open market like copper […]

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