Uranium supply approaches a tipping point

Uranium has gone through a bout of volatility over the past few months, notably selling off from the decade highs it had hit earlier this year on bullish supply and demand narratives. Supply disruptions and slower-than-expected production resumptions played a large role in the initial rally. As such, with Kazatomprom (‘KAP’) announcing a surprise production upgrade in 2024 and reducing near-term projected deficits, spot uranium markets promptly experienced a correction. However, this price consolidation may not be a reflection of shifting sentiment, but rather a healthy breather amid constantly improving market fundamentals. Key takeaways

Uranium markets have historically relied on secondary supply stockpiled from the Cold War era of excessive uranium production.

Utility firms have shown decade high commitment to long-term contracts, indicating increasing demand and concerns about supply shortage.

Kazakhstan’s surprise mineral extraction tax change is an overall positive development which could delay uranium asset development and incentivise […]

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