home Demand, U Uranium Gains Momentum, Surpasses All Commodities Amid Virus

Uranium Gains Momentum, Surpasses All Commodities Amid Virus

Uranium is one of the few commodities that has witnessed a notable price increase amid the outbreak of novel coronavirus. While the recent pandemic weighed heavily on demand and prices of most energy products plus industrial metals like copper and steel, uranium’s use as a key power generation fuel has kept its consumption stable.

The radioactive metal has risen nearly $10/LBS or more than 35% so far this year, outperforming the world’s other major commodities. The gains have been stimulated by mine shutdowns due to COVID-19 safety measures that reduced more than a third of annual global uranium supply at a time when demand from power plants has remained strong.

Energy and electricity consumption has remained relatively stable as demand from power plants has been sustained amid the prevalent adversities. Uranium also stands to benefit from supply imbalance aggravated due to the COVID-19 pandemic. The industry is facing supply curtailments due to mine closures by industry giants, Canadian uranium producer Cameco Corporation (CCJ – Free Report) and Kazakh miner Kazatomprom among others are expected to leave a profound impact on the uranium prices.

Source: Zacks.com