A rare rally is being observed in uranium quotes. The radioactive metal has a fairly stable behavior; the asset has not been in demand for the past few years due to the accident at the Fukushima nuclear power plant.
Due to the coronavirus pandemic, uranium peaked at the end of last week, reaching $ 29.6 per pound. Last time, similar prices were observed on the market about four years ago.
Prior to the pandemic, the asset price totaled approximately $ 25 per pound. The rising cost is due to the fact that demand persists, but supply chains and extraction are affected by the overall quarantine.
Uranium is extracted, for example, in Kazakhstan. Kazatomprom, an extraction company, has already stated that the situation in the world will lead to a cut in extraction of the radioactive metal to the level of 4 thousand tons. A Canadian company Cameco, the world’s largest uranium producer, has even decided to completely stop production at the Cigar Lake mine and temporarily terminate the processing plant in Ontario.
Experts believe that the closure of mines and production facilities will continue, which will affect the uranium price in a “bullish” way.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group