Uranium futures in the United States recently traded at $70 per pound, slightly down from a recent four-month peak of $72. This adjustment comes as markets continue to analyze the implications of an uncertain supply outlook on nuclear fuel scarcity in the country. In response, the US government has earmarked up to $2.7 billion to bolster domestic uranium supply and enrichment capabilities. This funding initiative aims to alleviate some of the supply pressures as the country gradually reduces its reliance on Russian nuclear fuel imports.
Simultaneously, a recent order signed by US President Trump facilitates a reduction in regulations and expedites the licensing process for nuclear reactors and power plants. This strategic move is expected to accelerate the adoption of nuclear energy, thereby increasing the demand for uranium. It underscores the administration's commitment to supporting the nuclear sector and sets the stage for technology companies to utilize nuclear energy to power their energy-intensive data centers.
However, ambiguity surrounding potential tariffs on uranium imports from Canada and Kazakhstan continues to place additional stress on the limited domestic uranium capacity.
