Geopolitical tensions cloud uranium market

Significance

Uranium prices initially reacted strongly to Russia’s February invasion of Ukraine, rising briefly above USD60 per pound (0.45 kilogram) earlier this year before settling at around USD50 per pound. Western dependence on supplies from and processing by Russia and other authoritarian states has intensified market uncertainty.

Impacts

• East Asian activity will grow; Japan aims to accelerate the reopening of nuclear plants and consider new reactors.
• South Korea is planning to boost nuclear generation to meet climate goals and avoid premature reliance on renewable energy sources.
• Mergers and acquisitions will rise; Canadian miner Cameco has bought Westinghouse Electric, service provider to half the world’s reactors.