The Uranium market had another busy third quarter in 2023, with prices showing some signs of upward movement. The spot price of uranium rose from US$23.85/pound U3O8 in July to US$30.20/pound U3O8 in September.
Demand for uranium was on the rise, as the global nuclear energy market continued its growth. Many energy plants in the US, China, South Korea, the UK, and Japan were utilizing uranium for their operations. The improved demand pushed Uranium spot prices higher.
On the other hand, the US uranium market remained relatively stagnant during Q3. Utilities in the US had ample uranium stockpiled for their daily operations, so US demand was relatively low. This helped to keep prices relatively stable.
It was supply, not demand, that drove the uranium market in Q3. Kazakhstan, Russia, and Canada collectively produced approximately 63 million pounds of uranium during the quarter, pushing the market into a supply surplus. With inventories high, prices were unable to make significant upward progress.
As the quarter drew to a close, traders and analysts were cautiously optimistic about the fourth quarter, expecting a demand driven increase in prices. However, with still high production and unfavourable economics, the uranium market could remain relatively stable going into 2024.