Scotiabank Forecasts Uranium Supply Deficit to Continue Through 2030

Scotiabank (TSX: BNS) projects the uranium market will remain in a structural deficit until 2030, according to a research note published on March 25. The brokerage estimates the shortfall will equal approximately 4.9% of annual demand over the coming years.

This timeline extends their previous forecast by one year, highlighting continued challenges in ramping up new production. The bank’s revised outlook reflects permitting delays for several new mining projects that were expected to come online sooner.

Despite the current weakness in spot prices, Scotiabank’s analysts maintain that “uranium market fundamentals remain positive” after reviewing supply-demand dynamics. The report identifies growing agendas around decarbonization, energy independence, and power security as key drivers for long-term nuclear energy growth.

Notably, the report highlights China’s leadership role in nuclear expansion, forecasting that global nuclear capacity will increase by 12% by 2030, 30% by 2035, and 50% by 2040.

While planned supply expansion could potentially push the market into modest oversupply beginning in 2031, analysts warn that execution risks remain elevated for new projects.

In response to its updated outlook, Scotiabank has reduced price targets for several uranium producers, including Cameco Corp (NYSE: CCJ), which saw its target drop to C$81 from C$85, though this still represents a 24% upside from current levels. Denison Mines Corp (NYSEAMERICAN: DNN) and NexGen Energy (TSE: NXE) also received price target cuts.

The uranium sector has recently faced headwinds, with major producers experiencing share price declines amid softer spot prices for the nuclear fuel.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Secures Two Additional Exploration Licenses For Flagship Project

First Majestic Posts Record Quarterly Silver Production In Q3

Related News

Nuclear Power at Risk: Russia and Kazakhstan Threaten to Cut Uranium Exports

The international uranium market is facing growing uncertainty as both Russia and Kazakhstan signal potential...

Monday, September 16, 2024, 11:27:00 AM

Uranium Names Rally On Cameco 20% Guidance Cut

Cameco (TSX: CCO) has slashed its 2025 McArthur River/Key Lake forecast to 14–15 million U₃O₈...

Friday, August 29, 2025, 08:34:59 AM

Cameco Signs MOU With GE Hitachi, Synthos Green Energy For Uranium Supply Chain Servicing Potential SMRs In Poland

Cameco (TSX: CCO) announced this morning that it has entered into a memorandum of understanding...

Thursday, September 23, 2021, 09:46:00 AM

Paladin Energy to Acquire Fission Uranium in a $1.14 Billion All-Share Deal

Paladin Energy Limited (ASX: PDN) has announced a definitive agreement to acquire Fission Uranium Corp....

Monday, June 24, 2024, 03:47:33 AM

Purepoint Uranium Reports Initial Results From Red Willow Drill Program

Purepoint Uranium Group Inc. (TSXV: PTU) today released an update on their drilling program at...

Tuesday, June 22, 2021, 08:13:22 AM