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Sector Report

Q1 2022: uranium supply fear; aluminium critically low

  • Multi Asset
  • Materials
  • Europe

The COVID-19 pandemic, the energy transition and geopolitical tensions are having a profound impact on demand for and supply of metals, with fear dominating sentiment for uranium and “critically” low inventory characterising global aluminium.

Uranium is becoming an integral piece of the energy conversation as many countries return to nuclear energy to help them achieve their net-zero goals. The Russia-Ukraine conflict is also amplifying the need for energy security, with fears of potential sanctions and disruption to normal market operations creating uneasiness in the uranium market. 

Long-term prices have been below or on par with spot market prices, suggesting the price is running on supply fears rather than fundamentals, a consultant at CRU International Ltd told Third Bridge Forum. “To a certain extent, it shows the backwardation in the market and the supply fears rather than the long-term concern, but, of course, with the situation developing, nothing is off the table.” 

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