FX.co ★ Uranium Rises to 20-Month High

Uranium futures in the United States surged to $89 per pound in January, marking the highest level in 20 months, amid expectations of robust long-term demand. This rise follows eased regulations by the US on the construction and permitting processes for uranium converters and enrichment facilities. Additionally, agreements for new power plant constructions have been announced. Key among these developments is a collaboration with Cameco for the advancement of Westinghouse reactors, alongside a significant $2.7 billion in contracts awarded to Centrus and two other reactor and enrichment companies. These initiatives aim to mitigate the decreased supply from Russia, prompted by sanctions on Russian nuclear fuel. Concurrently, US utility companies have secured contracts for enriched uranium from Western producers, a move that contrasts with European efforts to preserve Russian supply links despite the EU's urging to reduce reliance on Russian energy. The anticipation of increased investment in the sector, driven by government measures to bolster energy security and commitments to fund energy-intensive data centers, has also fueled interest from physical uranium funds.