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At the end of August, the spot price of uranium reached $59.9 per pound, breaking a 12-year record, according to the Canadian company Cameco, one of the world's largest producers of the metal.
"The days of buying $40 uranium are over — and probably also for $50 or $60. We’re going to need new supplies," said Grant Isaac, chief financial officer at Cameco, as quoted by a British daily business newspaper.
The price of the commodity, known as "yellowcake," has jumped about 12% in the past month to $65.50 a pound, a high not seen since 2011, according to UxC, a price data provider.
Demand for uranium has been recently driven by governments around the world seeking energy independence by extending the life of the existing nuclear reactor fleet and considering building new plants as gas prices have skyrocketed due to Russia's military operation in Ukraine.
In addition, the nuclear fuel supply chain has been shaken since the start of the special operation, as Russia plays an important role in the conversion and enrichment of uranium.
The British newspaper also noted that the July coup in Niger, which produces about 4% of the world's uranium, contributed to the price rise.
Around $200 Per Pound?
According to media reports, uranium demand is expected to increase by 27% between 2021 and 2030 and by 38% between 2031 and 2040. However, these figures could be higher, mainly due to geopolitical changes.
The British media outlet, citing experts, emphasized that the existing imbalance between supply and demand threatens to triple the price of uranium in the near future, aggravated by various external shocks.
"There’s been an imbalance between supply and demand for some time, and it has now been exacerbated by geopolitics," Nick Lawson, chief executive of Ocean Wall, told the newspaper, predicting that the spot price of uranium could rise to $200 a pound by 2025.
The paper pointed to the rise in uranium prices as a sign of the re-emergence of nuclear power as a critical carbon-free source of energy in the global effort to combat climate change. It noted that the world's focus on energy security is now colliding with a focus on the need for a green energy transition.