Uranium is treated as a strategic energy commodity, and geopolitical instability tends to amplify risk premiums even if the region isn’t a direct producer, hence its likely to firm this week. We believe the uranium price spike in January 2026 from US$85/lb to US$102/lb in just 3 days sent a strong message: the coming uranium super-cycle is likely to see extremely quick and outsized moves.
In April, China announced the construction of 10 new nuclear reactors. They now have 30 reactors under construction, almost half of the total worldwide. By 2030, China is expected to overtake the US as the world’s largest producer of nuclear energy. We expect to see the uranium price strengthen through the year as fuel buyers return to the uranium market. The worlds 2nd largest economy is clearly keen to become less dependant on traditional fuel sources, probably a good idea as the US tightens its grip on global oil production.
- We remain bullish towards uranium and the underlying sector but its likely to be a volatile journey as we’ve witnessed in recent years.
MM is bullish towards uranium ~$US86/lb.
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