Post by
Reachme on Nov 06, 2022 6:13pm
Historical pivot of confidence in the Uranium sector
Uranium futures fell to $51 per pound, falling from the near two-month high of $53.5 hit on October 27th amid low bidding by utilities and a retreat for coal prices. Still, confidence in the sector is seen improving as the energy crunch worldwide spurred higher investment in nuclear energy despite the outlook of higher interest rates. Among major players, Japan ordered the development of new power plants and approved 17 shut-down reactors to be restarted, marking a historical pivot of confidence in the sector since the 2011 Fukushima meltdown. Further, Chinas nuclear authorities announced extra capacity to accelerate its power plant building objectives, pointing to 10 new reactors being built per year. The bullish momentum drove the Sprott Uranium Physical Trust, often a catalyst for the uranium market, to re-enter the market following a period of volatility and purchase 100,000 pounds of U3O8 uranium.