The US House of Representatives passed a bill prohibiting the purchase of Russian enriched uranium on December 12. Due to this, there are now more supply concerns from other nations, such as the unpredictability of the military coup in Niger and decreased Canadian output.
Countries are being forced to expand investment in new power plants and extend the working lifespan of existing ones at the same time due to volatile markets for fossil fuels and decarbonization goals (e.g. China’s intentions to build 32 nuclear reactors by the end of the decade).
Furthermore, according to Trading Economics, optimistic projections for uranium demand were accompanied by a decline in power companies’ nuclear fuel inventories, which prompted significant short-term buying activity.
source: tradingeconomics.com
