Uranium Prices Could Soar 56% to $135/lb as Utilities Rebuild Inventories
Bank of America Research forecasts uranium prices at $135/lb in H2 2026 into 2027, a 56% rise over current spot, driven by aging mines and slow new production. Utilities restarting contracting, $9B sequestered in closed-end vehicles and sulfur supply gaps signal structural deficits and justify incentive prices above $100/lb.
1. Market Forecast and Price Outlook
Bank of America Research projects uranium prices to average $135/lb during H2 2026 into 2027, reflecting a 56% increase over current spot levels. This projection is anchored by fundamental shifts in utility behavior and tightening physical supply.
2. Supply Constraints and Bottlenecks
Existing uranium mines are aging and incremental projects face lengthy development timelines, creating a structural shortage. Compounding the deficit, global sulfur shortages are hampering leaching processes, pushing incentive prices for new production above $100/lb.
3. Utility Re-engagement and Contracting Trends
Utilities have reversed a decade of inventory drawdowns by actively contracting at higher price points to secure future supply. This renewed contracting cycle is critical as reactors extend refueling intervals and require larger uranium volumes.
4. Investor Participation and Geopolitical Factors
Approximately $9 billion of uranium is locked in closed-end investment vehicles, further tightening available supply. Geopolitical tensions and the baseload nature of nuclear demand underpin market resilience, even amid economic volatility.