FX.co ★ Uranium Holds Near 18-Month Low

Uranium futures remained steady at approximately $64 per pound in April, marking the lowest point in 18 months. This trend is attributed to an ongoing balance of sufficient supply and uncertain demand. In a strategic move, US President Trump decided not to impose major reciprocal tariffs on Russia. This decision aligns with his previous indications of wanting to strengthen economic ties with the country, leading to speculation that Washington might lift the existing sanctions on the import of Russian nuclear fuel. Recent estimates revealed that Russia holds nearly half of the world's uranium conversion and enrichment capacity, while Western enrichers face capacity limitations despite an ample supply of yellowcake. Concurrently, markets are reevaluating speculative positions on nuclear power demand for US data centers, fueled by the development of more efficient large language models in Europe and China. Reflecting this shift, Microsoft has reportedly canceled leases for new datacenter spaces, highlighting a divergence from the belief that tech giants are in a race to secure additional power capacity.