Uranium futures have recently climbed above $71 per pound, marking a recovery from an eighteen-month low of $64 seen in March and April. This increase is driven by market assessments of forthcoming demand levels and ongoing concerns over domestic mining capabilities. The United States has halted tariffs on key trade allies and is attempting to mend trading relations with China, mitigating negative outlooks on overall energy demand. However, uncertainty remains regarding potential tariffs on imports from Canada and Kazakhstan, which continues to pressure domestic uranium supply. The US heavily relies on Kazakhstan for its yellowcake imports, which are subject to a 27% reciprocal tariff, while Canadian imports incur a lower 10% tariff.
Simultaneously, market participants are reevaluating their speculative positions on nuclear power demand for data centers, influenced by the development of more efficient large language models. Notably, Microsoft has reportedly terminated leases for new data centers, contrasting previous expectations that tech companies were aggressively pursuing additional power capacity.
