FX.co ★ Uranium Extends Rebound from 18-Month Low

Uranium futures have climbed to $70 per pound, gaining momentum after previously hovering at an eighteen-month low of $64 throughout March and April. This change comes as markets evaluate future demand levels and the pressures on domestic mining capabilities. The United States has temporarily halted the imposition of aggressive tariffs on major trading partners, which helps to mitigate potential negative impacts on overall energy demand. However, there remains uncertainty regarding future tariffs on imports from Canada and Kazakhstan, which continue to strain the already limited domestic capacity. The US heavily relies on imports of yellowcake from Kazakhstan, which are subject to a 27% reciprocal tariff, while Canadian imports face a lower tariff of 10%. Meanwhile, market analysts are revisiting their forecasts on nuclear energy demand for US datacenters due to advancements in more efficient large language models emerging in Europe and China. In a notable development, Microsoft reportedly canceled leases for new datacenters, contradicting the previously held belief that technology companies were in a race to secure additional energy capacity.