URNM - Uranium demand continues to rise substantially since last month

2023-09-15 11:13:08 ET

Uranium ( NYSEARCA: URNM ) ETF is up about 30% since August, although its relative strength index is at 82.62, reported BTIG on Thursday.

Uranium prices have risen to their highest in 12 years.

Prices for “yellowcake” — a type of uranium oxide concentrate in solid form — jumped about 12% to $65.50 per pound over the past month, according to the Financial Times.

This is the highest since 2011, when Japan’s Fukushima nuclear disaster occurred. Right before the disaster, prices reached about $73 per pound.

But uranium prices could reach $200 per pound by 2025, said Nick Lawson, chief executive of Ocean Wall, an investment house established in 2019.

This heightened demand is due to governments seeking nuclear power independence by using uranium to extend the lifetime of their existing fleet of nuclear reactors, as gas prices have risen, in part due to the Russia-Ukraine conflict.

In addition, Uranium is a “critical carbon-free source of baseload power in global efforts to tackle climate change,” FT reported.

By 2040, the World Nuclear Association estimated that uranium’s demand could reach 130,000 tonnes each year, and new technology would have to be developed to meet this demand.

More on Uranium:

• Uranium Stocks Set For Next Leg Higher; URA ETF Still 80% Below Highs
• Uranium is in short supply, pushing up prices and mining stocks
• URA ETF: A Gateway To The Uranium Industry

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