Understanding the Market | CGN MINING opened over 3% higher as Russia restricts exports of enriched uranium to the U.S., potentially widening the long-term supply-demand gap for natural uranium

Zhitong
2024.11.19 01:27

CGN MINING opened over 3% higher, and as of the time of writing, it rose 3.35% to HKD 1.85, with a trading volume of HKD 4.2088 million. In terms of news, the Russian government announced on November 15th the implementation of temporary restrictions on the export of enriched uranium to the United States in response to the U.S. ban on imports of Russian uranium products. It is reported that U.S. President Biden signed a bill in May this year prohibiting the import of Russian uranium products to reduce the U.S. dependence on Russia in the civilian nuclear energy sector. In addition, CGN MINING recently announced that its affiliated companies produced a total of 692.6 tons of uranium in the third quarter, with a planned completion rate of 97.2%. Huayuan Securities recently pointed out that the AI power shortage has prompted cloud service providers to compete in laying out nuclear power assets, and the new round of nuclear power revival has made natural uranium a key resource in the AI era. Currently, the global nuclear power sector is entering a high prosperity cycle, with levels expected to match those of the post-oil crisis in the 1970s and 1980s, and the demand for natural uranium is steadily rising. The supply concentration of natural uranium is relatively high, with limited increases in primary supply and a gradual decline in secondary supply. The medium to long-term supply-demand gap may widen, pushing the price center of natural uranium upward

According to Zhitong Finance APP, CGN Mining (01164) opened over 3% higher, and as of the time of writing, it has risen by 3.35%, trading at HKD 1.85, with a transaction volume of HKD 4.2088 million.

On the news front, the Russian government announced on November 15th the implementation of temporary restrictions on the export of enriched uranium to the United States in response to the U.S. ban on imports of Russian uranium products. It is reported that U.S. President Biden signed a bill in May this year prohibiting the import of Russian uranium products to reduce the U.S. civilian nuclear energy sector's dependence on Russia. In addition, CGN Mining recently announced that its affiliated companies produced a total of 692.6 tons of uranium in the third quarter, with a planned completion rate of 97.2%.

Huayuan Securities recently pointed out that the AI power shortage has prompted cloud service providers to compete in laying out nuclear power assets, and the new round of nuclear power revival has made natural uranium a key resource in the AI era. Currently, the global nuclear power sector is entering a high prosperity cycle, which is expected to be comparable to the post-oil crisis of the 1970s and 1980s, with stable upward demand for natural uranium. The supply concentration of natural uranium is relatively high, with limited increments in primary supply and a gradual decline in secondary supply. The medium to long-term supply-demand gap may widen, pushing the price center of natural uranium upward

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