Uranium Price Outlook for 2024 According to Citi By Investing.com

prices have been under pressure recently, trading in a narrow range and slightly lower due to limited trading volume and liquidity.

However, according to analysts at Citi Research in a note dated Monday, this weakness in uranium prices is expected to diminish as demand for nuclear power continues to grow while supply struggles to keep up.

Citi analysts remain tactically bullish on uranium in the short to medium term, with forecasts pointing to a potential return to $98/lb later this year.

Citi adjusted its uranium price forecasts in response to the recent market slowdown. Analysts now expect uranium prices to average $94/lb in 2024, with potential upward momentum in the third and fourth quarters.

Looking ahead, Citi expects uranium prices to average $110/lb in 2025, reflecting continued bullish sentiment driven by growing demand for nuclear power.

Uranium production saw significant growth in 2023, increasing by more than 10% or 14 million pounds. This growth was primarily driven by the expansion of existing mines, with Kazakhstan playing a key role.

Production in Kazakhstan has been revised up slightly, with production expected to be 59 million pounds this year as sulfuric acid issues are anticipated to be resolved. In Canada, the Cigar Lake and McArthur River mines are showing improved performance and are likely to reach production plateau this year.

The newly developed McLean Lake mine, however, is expected to contribute just £0.5 million annually.

The pace of uranium mining restarts and new mine development globally will be crucial in determining uranium prices. Citi expects supply to grow by £17m in 2024, followed by increases of £14m in 2025, £12m in 2026 and more modest growth in subsequent years.

By 2030, the cumulative increase in supply is expected to reach £38 million. However, cumulative global uranium demand is projected to exceed 40 million pounds over the same period. While stocks are likely to balance the market in the short term,

Citi notes a long-term downward trend, with inventories expected to fall by 20 million pounds by 2030, underscoring the importance of production increases.

“The demand outlook for uranium has steadily improved as the need for clean energy and higher energy consumption over time make nuclear power highly attractive globally,” the analysts said.

The need for nuclear power is becoming more and more attractive, especially in the context of the growing demand for data centers.

In the United States, the growth of AI and data centers is expected to increase total energy demand by 11% by 2030. The recent results of the 2025/2026 PJM capacity auctions exceeded market expectations, signaling strong potential for growth in nuclear power in the US.

While no new reactors are expected to be built in the U.S. in the near future, several steps are being taken to increase demand for uranium, including upgrades, extending plant life, and restarting retired nuclear plants.

Restarting nuclear power plants is likely to have the most significant short-term impact on uranium demand, as initial fuel loading requires three times as much uranium as normal refueling processes.

In the US, apart from the likely restart of the Palisades plant in the coming years, discussions and preparations are underway for the possible restart of Three Mile Island 1, Indian Point Units 2 and 3 and Duane Arnold.

Globally, reactors in Taiwan, India and Canada could also be restarted in the next five years, further boosting uranium demand.