Sprott Notes Recent Weakness In Uranium Market, Cautions On Russia and China

Investment company welcomes policy progress on new nuclear capacity

Sprott Notes Recent Weakness In Uranium Market, Cautions On Russia and China
Kazakhstan’s state-owned Kazatomprom is the world’s largest and lowest-cost producer of uranium. Courtesy Kazatomprom.

November saw “notable” weakness in the uranium market, despite positive signs that utilities are starting to sign new long-term contracts, visible policy progress on new nuclear capacity, and ongoing challenges in bringing uranium supply to market, Canada-based investment management company Sprott said in an update.

Sprott, which specialises in precious metals including uranium, said year-to-date performance remained positive with the spot uranium price gaining 3.62%, although in November it fell 7.9%. It now stands at around $75.8/lb.

Long-term pricing climbed to $86/lb, up 8.86% this year, after being stuck for months in the $79-$82 range, signalling that utilities are accepting higher prices in long-term contracts.

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