您现在的位置是:erlang b formula > Hotspot
【why can't d3 schools give athletic scholarships】Why Uranium Markets Are Gaining Interest
erlang b formula2024-09-29 12:22:19【Hotspot】6人已围观
简介Uranium futures is one of the few contracts that has experienced price gains in recent weeks, as the why can't d3 schools give athletic scholarships
Uranium futures is why can't d3 schools give athletic scholarshipsone of the few contracts that has experienced price gains in recent weeks, as the economic impact of COVID-19 continues to weigh heavily on prices for most commodities.
Front-month
uranium futures
settlement prices have traded up to $32.50/pound in late April, compared with around $24/pound in early March, when most of the world's advanced economies began shutting down
In contrast to the bull run on uranium, prices for most energy products have sharply declined since the shutdowns began, while prices for industrial metals like copper and steel have also been under pressure amid low end-user demand.
Fundamental Shift
Electricity consumption has held up relatively well in the slowdown caused by the virus. As a key power generation fuel, uranium has been less impacted by the spread of the virus than other commodities that are used more for transport or construction.
Uranium also benefits from a
supply-demand balance
that is relatively supportive at present. COVID-19 has emerged as a threat to global uranium supply. Indefinite mine closures in Canada, Kazakhstan, Australia and other countries are expected to drive the price of
U3O8 uranium
higher as utilities fight to secure supply and producers either turn to market purchases or draw down on inventories in order to meet contractual obligations.
On March 23 Cameco, a Canadian uranium producer, announced that it will be temporarily suspending operations at
the Cigar Lake mine
, home to the largest high-grade uranium deposit in the world.
Kazatomprom, Kazakhstan's national atomic company and the world's largest uranium producer, announced on April 7 that it will be
suspending production nationwide for three months
to slow the spread of COVID-19. In 2019, Kazakhstan accounted for 42% of global uranium production. Supply side disruptions caused by mine shutdowns and suspensions are sweeping across the uranium industry and continue to drive a bullish trend.
In the long-term, demand for uranium is growing, particularly from Asia. In April 2020, there were 55 nuclear reactors under construction across the globe, 22% of which are in China. China also plans a further 44 reactors and is considering adding another 168 in the future.
At the same time as demand is increasing, supply has fallen. A run of consistently weaker prices between February 2011 and December 2017 led some operators to close down mines or suspend operations, reducing uranium output around the world.
New Entrants
The lack of correlation between uranium and other energy and metals commodities is also attracting new participants into the uranium futures markets. Fund managers and general investors have noted the recent price activity and are beginning to get involved in uranium futures trading, many for the first time.
Story continues
At the same time, the relatively volatile nature of uranium prices in recent years has led to a significant upturn in interest in risk management from electricity producers and project developers that are looking to hedge their fuel price exposure. The changing nature of the physical uranium market is ensuring that market participants are increasingly focused on managing price risk.
To learn more about options, go to Benzinga's futures and options education resource.
The post Why Uranium Markets Are Gaining Interest appeared first on OpenMarkets.
See more from Benzinga
OpenMarkets Weekly: FX Volatility
European Repo Demonstrates Its Resilience
After Price Wars And A Pandemic, What's Next For U.S. Shale?
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
View comments
很赞哦!(19)
相关文章
- Arch Coal (ARCH) Down 22.8% Since Last Earnings Report: Can It Rebound?
- Bank of Montreal (BMO) Upgraded to Strong Buy: Here's Why
- Why Bank of America (BAC) Could Beat Earnings Estimates Again
- BRIEF-YFG Bhd Says Unit Accepted Letter Of Award
- Were Hedge Funds Right About Caterpillar (CAT)?
- Watch Shania Twain Slay Glastonbury 2024 With ‘Man! I Feel Like a Woman!’
- Metso agrees to acquire the service business of Chile's HighService Corp
- The Week Ahead – Private Sector PMI, U.S Nonfarm Payrolls, and Central Banks in Focus
- GLOBAL MARKETS-Asian shares go flat as China data disappoints
- E-mini S&P 500 Index (ES) Futures Technical Analysis – February 1, 2019 Forecast
热门文章
站长推荐
What Is Parker-Hannifin's (NYSE:PH) P/E Ratio After Its Share Price Tanked?
Shares in Dewan Housing hammered by mismanagement allegations
University of Michigan Consumer Sentiment Index Remains Near Two-Year Lows
Budget 2019: Modi just attempted a surgical strike to retain power
German Court Issues a Dangerous Verdict for the ECB
The Big Bang Theory adds Walton Goggins, Beth Behrs
French regulator orders Google to review ads policies
A Focus on Out-of-Favor, Overlooked and Misunderstood Securities with Strong Balance Sheets Key to This Manager's Portfolio Construction Strategy
友情链接
- Benton Completes Option to Purchase Deal with Rio Tinto on Baril Lake Project and Plans January Drilling on Panama Project in Red Lake Mining District
- EarthWater New Year – New You Celebration of Life & Health – Contest to Receive EarthWater for One Year
- 2019 begins with higher drug prices
- Meghan Trainor’s TMI Comments on Daryl Sabara Marriage: From ‘Gross’ Toilet Moments to ‘Painful’ Sex
- Italy Is Heading for Recession in 2019. Here’s Why
- Whitney Houston's death: Wendy Williams breaks down -- VIDEO
- Google Exec: The Phones We're Making At Motorola Aren't Going To 'Wow' You
- What Kind Of Shareholder Owns Most Pioneer Distilleries Limited (NSE:PIONDIST) Stock?
- S.Korea's Hyundai target 2019 global sales of 4.7 mln vehicles
- What Kind Of Investor Owns Most Of Krakatoa Resources Limited (ASX:KTA)?