Uranium price up 8% amid protests in Kazakhstan

Uranium prices jumped sharply amid mass protests in Kazakhstan, which is the world's largest producer of uranium (Kazakhstan accounts for more than 40% of world production).

Yesterday, the spot price of uranium nitrous oxide concentrate (an intermediate product of natural uranium processing) jumped by almost 8% to $45.25 per pound. A day earlier, this figure was $42. Global depositary receipts (GDRs) of the national nuclear company Kazatomprom fell by 3.1% at auction in London.

Commenting on the situation, the head of UxC (one of the leading companies in the nuclear industry engaged in research and market analysis) Jonathan Hinz noted that the current situation in the country has the same impact on the market that problems in Saudi Arabia would have on the price of oil. Hinz also noted that at the moment there is no shortage of uranium supplies, but market participants believe that there are prerequisites for this, and perhaps the shortage will not be avoided.

Recall that uranium prices resumed their growth in September 2021 after a long stagnation in the market due to increased demand from investment funds betting on the importance of nuclear energy for the global energy transition. Until September, the cost of uranium was located in the region of $30.