Understanding the Market | Nuclear power stocks collectively rise, CNNC International surges over 20%, CGN Mining rises over 5%
Nuclear power stocks collectively rose in early trading, with CNNC International up 20.37% to HKD 6.5, and CGN MINING up 5.34% to HKD 3.55. Sprott successfully financed a spot uranium-based fund, with uranium prices rising from USD 76.03 to USD 83. China Post Securities believes that the Federal Reserve's interest rate cuts will support an increase in uranium prices, with the fourth quarter being a peak procurement season. JP Morgan pointed out that the revival of nuclear energy and the surge in AI demand, along with major producers reducing output, have led to supply tightness, with spot and futures uranium prices rising by about 5%
According to the Zhitong Finance APP, nuclear power stocks rose collectively in the morning session. As of the time of publication, CNNC International (02302) rose by 20.37% to HKD 6.5; CGN Mining (01164) rose by 5.34% to HKD 3.55.
On the news front, according to BOC International, the Sprott Physical Uranium Trust (SPUT) has successfully raised funds on 18 out of the past 22 trading days, with the fundraising scale reaching a new high since 2021-22. Since September 1, SPUT has raised over USD 300 million and purchased over 3.8 million pounds of U3O8 in the spot market. During September, the spot uranium price rose from USD 76.03 to USD 83. China Post Securities believes that as the Federal Reserve continues to cut interest rates, SPUT's purchasing behavior will last for a long time. Additionally, with the end of the European summer break, long-term trade transactions are gradually becoming active. Historically, the fourth quarter is a peak season for annual procurement, and downstream nuclear power owners may gradually enter the market for procurement, optimistic about the continued rise in uranium prices in the second half of the year.
Furthermore, a recent report from JP Morgan reveals an increasingly tense market reality: on one side is the explosive demand brought by the nuclear energy revival and the AI revolution, while on the other side are production cuts by major producers and supply bottlenecks caused by geopolitical issues. Since the beginning of this year, the spot and futures prices of uranium have risen by about 5%. Behind the price increase is the reduction in output by major global producers such as Kazatomprom and Cameco, while China's rapid nuclear power construction and the enormous electricity demand from AI data centers are driving strong growth in demand
