Uranium prices have been on an upward trajectory since the beginning of 2023. In the third quarter of 2023, uranium spot prices continued rocketing to their highest level since 2011. The average uranium price registered an appreciation of 15.2% on a quarter-over-quarter basis.
Uranium prices have been on a steady climb since the global nuclear industry started to experience a revival. Increased demand from countries such as China and India who have both been making significant investments in their nuclear power capacities has contributed to the surge in uranium spot prices. With more investment in the pipeline, we can expect uranium prices to maintain their bullish trajectory in the coming quarters.
The US is also experiencing a significant surge in nuclear power production. The number of nuclear power plants rose from 96 in 1973 to over 100 in 2023. This growth is a direct result of the US government encouraging nuclear power development in their energy production strategies.
The global uranium market is closely tied to the US Nuclear Fuel Cycle policy. The policy frameworks affects uranium prices significant due to the impact it has on mining projects and exploration activities around the world.
In the third quarter of 2023, the majority of uranium spot price gains were mainly driven by increasing demand in developing countries. India, China, and South Korea are among the countries that are in the process of building or expanding their nuclear power production capability.
All in all, the uranium market remained bearish during the first two quarters of 2023, only to turn bullish in the third quarter. This was primarily due to a combination of increased demand from uranium consumers coupled with government incentives and supportive policies. As the development of nuclear power infrastructure continues around the world, it is likely that the positive trends in the uranium price will continue.