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According to COMEX data, global uranium prices reached their highest level in more than 15 years in late October, with analysts attributing the sharp rise to a variety of factors, including geopolitical tensions.
According to data, uranium futures for November delivery increased to $74.5 per pound on Monday. The price of the radioactive metal has increased by 55% since the beginning of the year.
In light of limited global reserves, resurgent demand for uranium, which is widely used in nuclear energy, has put downward pressure on prices. Analysts report renewed global interest in nuclear power as Russia’s energy supplies dwindle.
Adding to those concerns, Canadian miner Cameco, the world’s second largest uranium producer, has lowered output forecast for 2023. Another major producer, France’s Orano, has also been facing difficulties due to a recent coup in Niger, which accounts for 4% of global uranium output. The African country was the second-largest supplier of uranium to the EU last year as Russian energy supplies dwindled.
The International Energy Agency (IEA) previously predicted a surge in global demand for critical minerals such as uranium as a result of renewed interest in nuclear power.
According to a recent World Nuclear Association report, nuclear capacity will increase by nearly 80% by 2040, with uranium demand roughly doubling.