Key factors affecting the uranium price outlook
In this article we take a look at some of the key supply and demand considerations affecting the uranium price and its outlook, including the most recent influence of the Russia Ukraine crisis.
Uranium price surges in the first weeks of March 2022
The uranium price continues to rally, impacted by consequences of the ongoing war between Russia and the Ukraine.
The below monthly chart of uranium (from 2000 to current) shows the dollar price per pound (LB) of the chemical element which is currently trading at its highest levels since May 2011. While off its highs for the month, the price of uranium has jumped more than 17% in the first 15 days of March 2022.
What is uranium used for?
Uranium is primarily used to power nuclear reactors and create electrical energy.
Why is the uranium price rallying at present?
The ongoing war between Russia and the Ukraine looks to disrupt trade of the nuclear element. In addition to possible supply headwinds, there has been a growing societal demand for nuclear power as oil, coal and gas prices elevate and the world looks to diversify away from fossil fuels as a source of energy.
It should be noted that the US, while having banned imports of oil and other energies from Russia, have not yet imposed a ban uranium from the country (as of 15 March 2022).
Which countries use the most uranium?
Ironically it is the US that consumes the most Uranium, followed by China, France then Russia.
The below graphic from Statista.com highlights uranium consumption per metric ton by country.
Which country produces the most uranium?
While Ukraine and Russia fall within the top ten uranium producers in the world, it is Russia’s ally Kazakhstan which is by far the largest exporter of the commodity.
The World Nuclear Association has reported that in 2020, Kazakhstan produced around 41% of the global uranium supply. The next largest exporting nations of uranium are Canada and Australia who accounted for roughly 13% and 8% respectively of global supply in 2020.
Which companies are the top producers of uranium?
The below graphic from Statista.com shows the leading uranium producing companies based on production (metric tons) in 2020.
KazAtomProm, listed on the London Stock Exchanges (LSE) is the largest uranium producing company globally, accounting for 24% of world production in 2020, with its primary operations in Kazakhstan.
Orano and Uranium One each accounted for around 9% of total production in 2020.
Orano, is now a private company, although was previously listed as Areva on the Euronext Stock Exchange, Paris.
Uranium One is wholly owned indirectly by Rosatom, the Russian state-owned nuclear corporation.
Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
