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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
