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Uranium market recovery expected after Trump signs new US

nuclear energy orders

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Analysts foresee long-term uranium supply confidence and

increased contracting activity

By Mrinalika Roy

May 27 (Reuters) - President Donald Trump's latest

orders seeking to revitalize the U.S. nuclear energy industry

could pull the uranium market out of its current lull and boost

investor interest, industry experts said.

Spot uranium prices have fallen about 30% from peaks hit in

2023 as institutional investors pulled out, spooked by recession

fears and geopolitical instability.

The prices briefly declined to $64.30 per pound this year

after they touched a 14-year high of $82 in February last year

amid a global clean energy push and expectations of tight

supply.

But the latest executive orders, signed on Friday, could

reinvigorate uranium production in the U.S. to help meet surging

power demand, industry insiders said.

The demand surge is primarily driven by data centers that

require massive energy to power the AI boom, and nuclear energy

is an attractive option for Big tech firms such as Amazon ( AMZN ),

Google, Microsoft ( MSFT ) and Meta given its reliability and near-zero

carbon footprint.

Nuclear projects, however, have been facing rising costs and

competition from natural gas plants. Vogtle, the last U.S.

reactor to come online, was $16 billion over budget and delayed

by several years.

Curtis Moore, senior vice president at Energy Fuels ( UUUU ), said

the current weakness in uranium has made it difficult to advance

new domestic projects, given a lack of investor interest - a

sentiment echoed by other firms in the sector.

Stocks of Major uranium-linked companies Energy Fuels ( UUUU )

, Uranium Energy Corp ( UEC ) and Encore Energy

plunged 13%, 23% and 53%, respectively, this year.

Their shares rose between 17% and 23% on Friday after the

orders were signed.

"(The orders) will provide further confidence that the

Federal funds already earmarked to support the domestic nuclear

fuel supply chain (will) get deployed quickly which in turn

should attract more private investment," said Nick Amicucci of

Evercore ISI.

Analysts see further upside, with incentive prices for new

uranium production estimated above $100/lb.

"Even before the AI boom and SMR (Small Modular Reactors)

hype, the uranium outlook was strong," said Robert Crayfourd

from Geiger Counter.

Spot uranium prices are currently around $70/lb, with term

contracts trending around $80/lb.

"(The decision) paves the way for renewed contracting and

long-term supply confidence," said Marco Mencini, head of

research, Plenisfer Investments.

Currently, U.S. utilities hold less than two years of

inventory, with contracting down 40% in 2024.

The executive orders include a directive for fast-tracking

licenses for new reactors, which would in turn boost contracting

by utilities.

"This is essentially a wartime defense measure," said Justus

Parmar of Fortuna Investments. "We produce only 1 million pounds

of uranium annually against a consumption of 50 million pounds.

Nuclear energy is no longer optional - it's essential."

Industry insiders expect the policy to accelerate deployment

of small modular reactors, encourage capital inflows and support

reactor life extensions.

Travis McPherson of NexGen Energy forecasts "a mad rush to

secure uranium sources."

"It will be like musical chairs where many will be left

standing without a chair."

(Reporting by Mrinalika Roy, additional reporting by Vallari

Srivastava and Seher Dareen; Editing by Shinjini Ganguli)