Contango
Contango occurs when uranium forward prices exceed spot prices, indicating expectations of future supply tightness or storage costs.
In uranium markets, contango reflects long-term contract premiums over spot due to mine supply lags and utility hedging. Recent curves show $80/lb spot vs. $90+/lb for 2026 delivery amid Kazatomprom cuts. It incentivizes producers to hold inventory.
Why it matters now
2025-2026 forward curves in contango signal sustained high prices, impacting SMR financing and data center PPAs reliant on stable nuclear supply.
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