Capital Economy, Business and Finance
War in Ukraine and a coup in Niger have helped drive up uranium prices more than three-fold in three years. Other factors include demand from China, which plans to build 150 new nuclear reactors in the next ten years, and hoarding by specialist firms that trade and store uranium oxide. Despite the war, Russia remains the world’s dominant supplier of uranium suitable for reactors: its state nuclear monopoly, Rosatom, hasn’t been sanctioned because energy systems across the world depend on it. But fear that it would be sanctioned started a surge in uranium oxide prices in 2022 that shows no sign of stopping. The US, UK, Japan and France are investing $4.2 billion between them in facilities to separate fissionable uranium-235 from relatively abundant uranium-238. The Economist notes that when demand outstrips supply like this, markets usually find alternatives to whatever’s scarce. With nuclear power that’s tricky, but not impossible. Thorium, anyone?
