A key catalyst from China, page-2

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KEY POINTS

• Uranium stocks like Paladin Energy, Boss Energy, and Deep Yellow have risen 50–80% since April, driven by a bounce in uranium prices, now trading at a three-month high of US$71/lb
• Trump’s 23-May executive orders aim to boost US nuclear energy by reducing reliance on foreign uranium, leading to an 8–12% surge in uranium stocks on the announcement day
• Meta’s 20-year, 1.1-gigawatt nuclear power agreement with Constellation Energy, starting in 2027, signals strong long-term demand for uranium
• China General Nuclear’s new contract locks in uranium at US$94.22/lb, 52.5% higher than its prior deal, indicating tight supply and potential for higher spot and term prices
• The high term price creates opportunities for contango trades, but the market’s muted response suggests investors may be focused on broader global factors

Uranium stocks have been running hot, with names like Paladin Energy, Boss Energy and Deep Yellow up around 50-80% since early April, mirroring a rebound in uranium prices.

Uranium futures hit a three-month high of US$71/lb, recovering from an 18-month low in March. The rally gained traction amid a broader commodity and equity market recovery, spurred by President Trump’s tariff announcement, subsequent tariff pause, and ongoing trade talks.

Uranium price chart (Source: TradingEconomics)

Momentum accelerated on 23 May when Trump signed executive orders to bolster the US nuclear energy sector under the Defense Production Act. These orders aim to reduce reliance on foreign uranium from countries like Russia and China by streamlining regulations, boosting domestic uranium mining and enrichment, and supporting nuclear power for national security and data centers. Uranium stocks responded strongly, with names like Paladin, Boss, and Deep Yellow surging 8–12% on the announcement day.

Adding to the bullish outlook, Meta signed a 20-year, 1.1-gigawatt power purchase agreement with Constellation Energy for its Clinton nuclear facility, starting in June 2027. Meta also expressed interest in partnering to develop new nuclear power plant sites, signaling strong demand.

Meanwhile, a lesser-known but significant catalyst emerged on Wednesday, further supporting the positive outlook for uranium.

Full article:

https://www.marketindex.com.au/news/an-under-the-radar-catalyst-for-uranium-stocks