Uranium prices continue downward trend

Uranium prices have fallen to their lowest level in more than a month, to just under $79 per pound, on Friday, November 1, according to analyst website Trading Economics. The lower prices, according to the site, are related to recent evidence of increased supply. This contrasts with the longer-term expectations of bullish demand and higher prices.

DOE spending: The short-term increase in supply stems from a Department of Energy announcement in late June that it would spend $2.7 billion to build up the nation's domestic supply of uranium to counter the nation's ban on nuclear fuel imports from Russia. Under the U.S. government's import waiver program, limited supplies of uranium can be imported from Russia, though the Russian government had previously threatened to stop those shipments.

China news: A factor affecting long-term international expectations is the easing of credit conditions in China resulting from the Central Bank of China's efforts to boost investment in nuclear energy, which will increase demand for uranium. China is currently constructing 22 nuclear reactors, "leading the global nuclear renaissance," according to Trading Economics. Bullish assumptions are also being fueled by the plans of Microsoft and Amazon to use advanced nuclear power reactors for data centers.

Looking ahead: Since the beginning of the year, uranium prices have decreased $12.25 per pound, or 13.46 percent. However, analysts forecast that uranium prices will rise to trade at $81.16 per pound by the end of this quarter. Twelve months from now, market watchers estimate that uranium will trade at $85.55 per pound. That figure is less than the 12-month forecast made at the beginning of October, which was $91.80 per pound.