FX.co ★ Uranium Erases Year-Start Rally

Uranium futures in the US fell to $85 per pound in March, the lowest level in two months, even as coal prices climbed, reflecting concerns that the strong rally at the start of the year may have gone too far. Nevertheless, yellowcake prices remained slightly above December levels, supported by a bullish demand outlook. A key driver of recent nuclear power investment has been operators of energy-intensive data centers, prompting several major US tech companies to sign contracts for small modular reactors. At the same time, the US has eased regulations on building and permitting uranium conversion and enrichment facilities and announced new deals for constructing nuclear power plants. These include a partnership with Cameco to advance Westinghouse reactor projects, as well as $2.7 billion in new contracts awarded to Centrus and two other conversion and enrichment firms to help replace Russian nuclear fuel supplies following sanctions.