Uranium prices surged 50% this year

The prices of Uranium have significantly increased amid the risk of Western import bans on Russian uranium supply. The Bank of America is also adjusting its price outlooks considering further gains. This year the price of Uranium has surged by 50% to $63.60 a pound. 47% increase was registered in the price after Russia invaded its neighbor Ukraine in the month of February. Russia is a major leader in the global uranium supply chain. The country accounts for 17%, or an estimated 34 million pounds, of the total uranium supply for 2022.

In uranium conversion, Russia accounts for around 20% of global capacity and 29% of estimated 2022 production. It also accounts for 46% of global enrichment capacity. Analyst Lawson Winder said: "To the best of our understanding, the war has not yet contributed to direct disruption of shipments of Russia uranium products to the rest of the world. Rather, the price increase has been driven by concern about future disruption and a desire by market participants to lock in supplies in anticipation of that possibility.” Based on reporting by industry consultancy UxC, BofA said that most of the activity that increased the prices has come from the Sprott Physical Uranium Trust against utilities or producers.