Daily Management Review

Uranium rises 9% on riots in Kazakhstan


Uranium is up 9% amid protests and unrest in Kazakhstan. There is no shortage of uranium yet, but investors are concerned about the situation in the country, which produces over 40% of the product in the world.

Uranium is up 9.26% to $46 a pound on COMEX. The price is rising because of recent developments in Kazakhstan, which produces more than 40% of the world's uranium, Bloomberg noted. 

Kazakhstan is the No. 1 supplier of uranium in the world, so it's comparable to the situation if Saudi Arabia had a problem with oil, Jonathan Hinze, president of the nuclear fuel market research and analysis firm UxC LLC, told Bloomberg. The likelihood of a uranium shortage is what's driving investor sentiment right now, even if there isn't a shortage in the market itself, he said.

The global depositary receipts of state-owned Kazatomprom, which mines natural uranium, fell at the London Stock Exchange on Thursday.

Protests erupted in Kazakhstan January 2, leading to riots and clashes between protesters and security forces. Against this backdrop, the government resigned. A state of emergency is imposed in Kazakhstan.

source: bloomberg.com