Uranium Gains 10% as Top Producer Plans Output Cut Amid Glut
- Kazakhstan will reduce production by more than 2,000 tons
- Supply curbs may be inflection point for the market: Cantor
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Uranium surged the most in more than three weeks as Kazakhstan said it will reduce production by 10 percent this year after prices slumped in 2016 amid a global inventory glut.
Spot uranium rose $2.25, or 10 percent, to close at $24.25 a pound on Tuesday, the highest level since September, according to data from Ux Consulting Co. Prices have gained 19 percent this year. The announcement from Kazakhstan, the world’s biggest producer, may mark an inflection point for the market, according to Cantor Fitzgerald LP. The cuts could lead to higher prices, according to Ux, a provider of research on the nuclear industry.