FX.co ★ Uranium Drops to 2-Month Low

In November, uranium futures dropped below $77 per pound, marking their lowest level in two months. This decline is attributed to an improved supply outlook, despite ongoing expectations for robust nuclear power consumption in the coming decades. Kazatomprom, the largest uranium producer worldwide, reported a 33% growth in exports during the third quarter, along with a 10% increase in overall production. This alleviated concerns about supply constraints that arose from earlier guidance indicating a potential 10% decrease in output by 2026. While Cameco projected reduced production for this year, the company highlighted its capability to expand capacity to compensate for any output deficits if necessary. These developments have dampened the surge in uranium futures, which previously reached a 14-month peak of $84, driven by strong demand. Meanwhile, the United States has announced agreements for the construction of new power plants and has eased regulations related to uranium converters and enrichers. This move is underpinned by Cameco's collaboration with the US government, which has endorsed the construction of Westinghouse reactors.