Uranium (symbol U) is a chemically reactive, radioactive, steel-gray, metallic element and is the main fuel used in nuclear reactors. Uranium is the heaviest of all the natural elements. Traces of uranium have been found in archeological artifacts dating back to 79 AD. Uranium was discovered in pitchblende by German chemist Martin Heinrich Klaproth in 1789. Klaproth named it uranium after the recently discovered planet Uranus. French physicist Antoine Henri Becquerel discovered the radioactive properties of uranium in 1896 when he produced an image on a photographic plate covered with a light-absorbing substance. Following Becquerel's experiments, investigations of radioactivity led to the discovery of radium and to new concepts of atomic organization.
The principal use for uranium is fuel in nuclear power plants. Demand for uranium concentrates is directly linked to the level of electricity generated by nuclear power plants. Uranium ores are widely distributed throughout the world and are primarily found in Canada, DRC (formerly Zaire), and the U.S.. Uranium is obtained from primary mine production and secondary sources. Two Canadian companies are the primary producers of uranium from deposits in the Athabasca Basin of northern Saskatchewan. Specifically, the companies Cameco accounted for 19% of global mine production in 2000 and Cogema Resources accounted for 15% of world production. Secondary sources of uranium include excess inventories from utilities and other fuel cycle participants, used reactor fuel, and dismantled Russian nuclear weapons.
Prices - The average price of delivered uranium in 2002 (the latest data available) rose by +2.1% yr/yr to $10.36 per pound from $10.15 in 2001. The 2001 price of $10.15 was a record low for the data series that goes back to 1981. The price of delivered uranium in 2002 of $10.36 was roughly one-third of the price of $30 per pound and above seen in the 1980s through 1986 when the price started falling.
Supply - World production of uranium oxide (U308) concentrate in 2003 (the latest data available) rose +7.3% yr/yr to a 13-year high of 56,552 short tons from last 2002's 52,709 short tons. The world's largest uranium producers in 2003 were Canada with 17,050 short tons of production in 2003 (30% of world production), the U.S. with 10,200 short tons of production (18% of world production), and Australia with 9,326 short tons of production (16% of world production). U.S. production in 2003 was the highest since 1983.
U.S. uranium production in 2003 rose +64.4% yr/yr to a 20-year high of 10,200 short tons, up sharply from the record low of 1,315 short tons in 2001. U.S. production had reached a peak of 21,850 short tons in 1980 and production had since fallen steadily to the record low in 2001, which was only 6% of the record level of production.
Trade - U.S. imports of uranium in 2003 (latest data available) rose +0.7% yr/yr to a record high of 53.044 million pounds. The U.S. is being forced to import more uranium as domestic production steadily declines. U.S. exports of uranium fell -14.3% yr/yr to 13.187 million pounds, which was still well above the 7-year low of 8.510 million pounds posted in 1999.