During the seven months of 2024, China has significantly increased its purchases of natural uranium from Kazakhstan, with the country accounting for the majority of its exports. Rosatom reduced imports, but paid more. The market attributes this to the fact that significant volumes can be purchased at spot price for re-export after uranium conversion and enrichment.
In January-July 2024, Kazakhstan exported 12 thousand tons of uranium (net weight), 45% of which went to China. These data are obtained from materials of the National Statistics Office of Kazakhstan.
The People’s Republic of China is actively developing nuclear energy, and only in August the country’s authorities approved the construction of 11 additional nuclear reactors over five years.
“China increased its purchases during the year both in physical terms (+21%) and monetary terms (+72%).” — the Telegram channel of the First Data Center of the Kazakhstan Credit Bureau reports. They noted that Rosatom paid more for Kazakh uranium.
“On an annual basis, the total value of supplies increased by 23%, although physical exports fell by approximately the same amount. As a result, the average cost of 1 kg of uranium has skyrocketed (+63%),” Data Hub reports.
According to Kazakhstani statistics, Rosatom imported 4.79 thousand tons of uranium for $924 million, and China National Nuclear Power Group (CGNM) imported 5.44 thousand tons for $822 million. As a result, the average price per pound for Russia was $87.5 and for China – $69.
Kazatomprom reported in its first-half results that the group’s average selling price rose 41% to $66 per pound, and spot prices rose 73-78% to $91-92.
A source in the nuclear industry said EADaily Russia meets most of its domestic needs with its own production, and imports are used for conversion, enrichment and subsequent sale abroad. This may be the reason for the rise in prices for Rosatom, which can buy part of the volumes at spot price. Despite the fact that China only started shipping in April, when the global spot price of uranium began to decline, while shipments to Russia were made every month except March.
In addition, the source said, Rosatom companies are co-owners of joint ventures in Kazakhstan and also make money from the extraction and export of natural uranium.
It cannot be ruled out that more attractive conditions may apply in China, as companies from the country are considered tough negotiators.
China and Russia accounted for 84.9% of Kazakhstan’s uranium exports between January and July. The remainder was supplied by France’s Orano (7.5% of supplies), US companies (5.9%) and Canada’s Cameco (1.7%). The average price per pound was $61.5 in the US, $79.5 in France and $56 in Canada.
According to the annual report of the Kazakh national company, in 2022 Kazakhstan accounted for 42% of the world’s uranium production. At the same time, Kazatomprom’s share is 22%, or 11.4 thousand tons. The national company sold half of its production to Asia.
Another 10 thousand tons were distributed among Kazatomprom’s partners in joint ventures. In terms of production capacity, 40% of Kazatomprom’s enterprises worked with Rosatom companies, 15% with Canadian Cameco, 12% with China National Nuclear Energy Group (CGNM) and French Orano, and 10% with Japanese companies.
In 2023, the share of Rosatom companies could increase. The fifth and sixth sections of the Budenovskoye deposit were 49% owned by Stepnogorsk Mining and Chemical Combine LLP. The media reported that in December 2022 the plant was bought by a company of the Rosatom group. The price could be $1.6 billion.
