Prices Uranium prices could rise from current levels of about $80 a pound to $135 a pound in 2026 due to market dynamics and geopolitical factors, analysts at Bank of America Securities said. In their report, they state that the uncertainty surrounding the availability of enriched uranium of Russian origin, as well as fears of a possible export ban by Russia in response to US sanctions, underscore the critical importance of security of supply in the uranium market.
These factors are expected to push uranium prices higher in the short term.
Bank of America Securities adjusted its short-term price forecasts for 2024, lowering its full-year forecast to US$89.1 per pound, a 13% decline, but predicts a significant recovery in the medium term.
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According to the bank's analysts, several factors contribute to the optimistic forecast. Key among them is the growing reliance on nuclear power as a source of low-carbon energy, especially given the fact that tech giants such as Microsoft are contracting out nuclear power to meet the growing needs of their data centers.