The U.S. Energy Information Administration released a study on
American nuclear supply on Tuesday. Finding that -- for the first time
-- Kazakstan's uranium miners have become the number one supplier to
U.S. nuclear reactors.
As the chart below shows, purchases of Kazakh uranium by U.S. operators jumped by 50 percent during 2014. To a total of 12 million pounds -- the highest level ever.
That supply growth was enough to put Kazakhstan on top in terms of
uranium supply to American users. Beating other go-to uranium producers
like Australia (10.5 million pounds) and Canada (9.8 million pounds).
Overall, Kazakhstan supplied 23 percent of total U.S. uranium demand for
Looking at purchase prices, it's easy to see why Kazakh supply has
become a favorite: Sale prices for uranium from Kazakhstan averaged
$44.47 per pound in 2014 -- well below other major suppliers, as the
chart below shows.
At these prices, Kazakh uranium is out-competing Australian
supply by over $3.50 per pound. Or almost 7.5 percent. A meaningful
difference for a utility that's purchasing large volumes of yellowcake.
That likely means supply from higher-cost locations like Australia
into the U.S. will continue to shrink. Being replaced by lower-cost
production from places like Kazakhstan and Canada (which saw its uranium
exports to the U.S. jump by over 25 percent in 2014).
One of the big losers here is domestic U.S. production. Which
was running at world-high costs of $48.11 per pound in 2014 -- the big
reason that purchases dropped a notable 65 percent on the year." Go to: http://www.zerohedge.com/news/2015-10-09/forget-potassium-kazakhstan-now-americas-top-supplier-uranium