OREANDA-NEWS Uranium prices have reached $85.25 per pound and are at their highest levels in the last 17 months amid increased long-term demand and investment fund purchases, Trading Economics reports.

According to the newspaper, the United States has lowered the requirements for issuing permits for the construction of enrichment plants, and also announced plans to build new nuclear facilities. In particular, agreements with Cameco and Centrus are mentioned, aimed at compensating for the consequences of a decrease in uranium supplies from Russia after the imposition of sanctions on Russian nuclear fuel.

In addition, expectations of increased investment in nuclear power and energy-intensive data centers have pushed uranium funds to purchase uranium. Trading Economics notes the recent deal by the world's largest uranium fund, Spot, to purchase 100,000 pounds of uranium.

In the medium and long term, market prices for uranium are expected to rise due to additional investment demand and a reduction in the liquid part of secondary sources. In the long term, price growth is projected to accelerate due to increased demand for uranium as new nuclear power plants are commissioned in China, India and other countries, Atomenergoprom (part of Rosatom) previously reported.

Trading Economics, citing a report by the World Nuclear Association, predicted a 28% increase in demand for uranium by 2030.

The British Yellow Cake Fund (specializing in investments in uranium) in December reported expectations of an increased imbalance of supply and demand in the uranium market. The company admitted the persistence of short-term price volatility, but fundamental factors point to their further growth due to the expansion of purchases by energy companies and the strengthening of the role of nuclear energy in the world.