“We have reached a bottom,” said Jonathan Hinze, president of UxC, a nuclear industry research firm. “The fundamentals are still strong, with increased demand and supply that hasn’t fully responded.”
Uranium futures are trading at $88.50 a pound in New York — down from the 16-year high reached in February, but still well above last year’s average price of $66.60 a pound.
There are indicators uranium’s new floor is at around current levels, Cantor Fitzgerald analyst Mike Kozak said in an interview, predicting that fundamental buyers will come back into the market and drive up prices again.
Bullish investors are betting on the long-term prospects of the radioactive metal due to a growing supply gap and increased demand as governments worldwide turn to nuclear power to counter climate change. Such demand comes as Canada’s Cameco Corp. and Kazakhstan’s Kazatomprom, which together account for half of global supply,…
