The price of uranium has risen to a historic high of $96 per pound, marking a 12% increase since the beginning of this year. This price surpasses the previous record of $95 per pound set in mid-2007. Meanwhile, the Spot price of uranium has also reached around $90 per pound, reflecting an 11% increase since the start of the year.
Key Points and Stock Market
Despite the rising price of uranium, the stock market for nuclear companies is following a downward trend. Analysts at TD Cowen, including Craig Hutchison and David Liang, have noted that while uranium prices are at a historic high, shares of nuclear companies and small modular reactor (SMR) projects are declining. This mismatch between the price of the physical commodity and digital stocks is due to buyers' concerns over high prices.
Volume of Uranium Contracts and Its Future
The volume of uranium contracts has significantly decreased by 15% compared to last year, reaching over 38 million pounds. At the World Nuclear Association symposium held from September 9 to 11 in London, there were hopes for an increase in trading volume, temporarily raising contract volumes to 42.2 million pounds. However, according to TD Cowen, companies have expressed concerns about receiving high prices and are not showing a willingness to contract in meaningful quantities.
Despite all these challenges, analysts believe that an increase in contract volumes in the future is inevitable. For example, the contract volume for 2026 is at its lowest level compared to the average of the past five years, indicating that companies cannot delay fuel purchases for long.
While the Spot price of uranium is increasing, the volume of Spot transactions has reached 38.6 million pounds as of September 15, showing a 12% increase compared to last year. This increase is largely attributed to significant SPUT purchases earlier this year.
Ultimately, despite record prices, the stock market is heavily influenced by economic conditions and investment uncertainties. In particular, shares of emerging companies like NuScale and Oklo have decreased by 50% compared to the beginning of the year.
