Nuclear Power Is About to Become More Expensive
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- Jun 11, 2021 3:50 pm GMTJun 11, 2021 1:11 pm GMT
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Conventional economics dictates that a product’s price rises when it is scarce and in demand. Global production of uranium, a raw material for the nuclear power industry, fell to 123 million pounds- the lowest since 2008 - in 2020, due to the pandemic shutdown.
After years of stagnation, its price has been ticking upward. One pound of uranium cost around $24.50 at the beginning of March last year. Slightly more than two months later, it had reached a peak of $34.54 per pound. As of this writing, it is changing hands at $32.06 per pound.
Like the prices of other commodities, uranium has had its price cycles based on demand for the fuel and production supply. But the increase this time around may not be temporary.