Uranium Advances 4% on Kazakh Output Cut, Deutsche Bank Fund

Uranium rose for a second week after Kazakhstan’s state producer cut its output target for next year and Deutsche Bank AG set up a fund to buy the radioactive metal.

“Spot supply no longer overwhelms demand as concerns over future production and signs of strengthening demand are all creating upward pressure on prices,” TradeTech said. Six deals for about 400,000 pounds of uranium took place last week.
Uranium is recovering after it slumped to $45 a pound from a record $138 a pound in June last year. Investors sold out of the metal on concern a global economic slowdown and credit freeze will curb construction of nuclear power plants.

State-run Kazatomprom said Nov. 6 it will produce less than 12,000 metric tons of the metal used to fuel the plants, at least 826 tons less than estimated in July. The world’s biggest producer, Saskatchewan-based Cameco Corp. said Nov. 5 it noticed a “modest increase in water inflow” at the McArthur River mine in Canada. Production wasn’t affected, it said.

Bloomberg