Uranium prices are gaining momentum again, approaching $89/lb in August after spending five months range-bound between $84 and $87. A structural supply deficit is driving the bullish outlook, as years of underinvestment and decade-long mine development timelines struggle to keep pace with expanding reactor demand.
Bloomberg's continuous front-month uranium futures contract (UXA1 Comdty) briefly surged above $100 a pound in late January, driven by tightening supplies, renewed government support for nuclear power, and rising electricity demand from the AI infrastructure boom.
Uranium futures then retreated and remained range-bound between $84 and $87 for five months. But momentum has returned in August, with prices approaching $89 a pound, the highest level since early February.
The ongoing theme is that years of underinvestment have limited mine supply growth despite rising reactor demand. New uranium projects can take a decade to develop, leaving producers unable to respond quickly to higher prices.
