Utilities are increasingly preparing for triple-digit uranium prices as long-term fuel contracts begin reflecting expectations for higher future uranium costs, according to the president of Cameco
Many utilities negotiating long-term uranium contracts are already modeling uranium prices near $120 per pound through pricing floors and ceilings built into long-term agreements, Cameco President Grant Isaac said on the “Triangle Investor” podcast released April 6.
“There are a number of utilities, 70% of the volumes contracted in 2025, are already pricing uranium at three-digit prices,” he said. “The midpoint is nearly $120 uranium.”
Utilities Continue Locking In Long-Term Supply
Isaac said roughly 116 million pounds of uranium were placed under long-term contracts during 2025 in a market that consumes about 190 million pounds annually.
Cameco prefers contracts tied to future uranium market prices instead of locking in fixed prices years before delivery, Isaac said on the podcast. “If you want to claim our future supply, you better be contracting,” he said.
Isaac said utilities focused on energy security and long-term fuel availability are beginning to contract for larger annual volumes over longer periods as concerns about future uranium supply continue growing. Market-based contracting approaches, including pricing mechanisms to manage volatility, have also been discussed by major utilities such as Duke Energy (NYSE:DUK) in regulatory filings.
Nuclear energy demand has also increased in recent years as governments and technology companies seek more reliable carbon-free electricity sources for data centers and industrial power needs.
Several countries have also extended the operating lives of aging nuclear reactors as electricity demand rises globally, the International Energy Agency said in a 2025 report.
Supply Risks Continue Tightening Uranium Markets
Cameco said in its latest supply-and-demand market update that uranium markets remain structurally undersupplied despite expectations from some buyers that future mine development could eventually ease shortages.
Isaac said disruptions tied to Kazakhstan, Niger and shifting geopolitical trade flows have already reduced the amount of uranium available to Western utilities. “We used to just sort of imagine uranium produced anywhere is available anywhere,” Isaac told the “Triangle Investor.” “What we’re starting to see is reallocations.”
He added that uranium once expected to remain in Western markets is increasingly being redirected toward countries including China and India through sovereign supply agreements.
Cameco remains reluctant to rapidly increase production before utilities begin signing enough long-term contracts to fully replace annual reactor fuel demand, Isaac said. “We remain in supply discipline,” he said. “We won’t chase those who aren’t convinced that they need to buy right now.”
Tightening uranium market conditions are beginning to show up in recent contract activity. Denison Mines (NYSE:DNN) said May 12 that it recently entered near-term uranium sales commitments with an average realized price above $99 per pound and had observed market-based pricing above $100 per pound.
Spot Uranium Market Remains Highly Volatile
The uranium spot market often gives investors a misleading picture of market conditions because utilities buy most fuel through long-term contracts rather than spot transactions, Isaac told the “Triangle Investor.”
He said utilities often secure uranium years before reactors actually need fuel deliveries, limiting immediate demand in spot markets. “The posted price is actually yesterday’s price. It’s in the rearview mirror,” Isaac said.
Even relatively small spot-market sales can create disproportionate downward pricing pressure because traders and utilities often pause purchases when additional supply enters the market, he said.
Source: Yahoo Finance