FX.co ★ Uranium Extends Rebound from 18-Month Low

Uranium futures have increased to $67 per pound, showing some recovery from their eighteen-month-low of $64 experienced during March and April. This uptick comes as market participants evaluate the strain on domestic mining capacity due to potential tariffs on significant suppliers to the United States. The US government's slow and ambiguous progress in trade negotiations has heightened the possibility that utilities and enrichers might incur tariffs on yellowcake and nuclear fuel, which could burden the already limited domestic capacity. A substantial portion of yellowcake imported into the US originates from Kazakhstan, subject to a 27% reciprocal tariff, whereas Canadian imports are subject to a comparatively lower 10% levy. Simultaneously, markets are reassessing their speculative outlook on nuclear power demand for US datacenters, following the advent of more efficient large language models in Europe and China. In line with this reconsideration, Microsoft has reportedly withdrawn from leasing new datacenter spaces, contrasting previous expectations that tech giants were in a race to secure additional power capacity.