China has emerged as the leading purchaser of Kazakhstan’s natural uranium exports during the first seven months of 2024. This development comes as China aggressively expands its nuclear energy sector, with recent approval for the construction of 11 additional nuclear reactors over the next five years.

According to data from Kazakhstan’s National Bureau of Statistics, the country exported 12,000 tons of uranium between January and July 2024, with China accounting for an impressive 45% of these exports. The Chinese National Nuclear Energy Group (CGNM) imported 5,440 tons of uranium at a cost of $822 million, reflecting a 21% increase in volume and a 72% rise in value compared to the previous year.

This surge in Chinese purchases coincides with a notable reduction in imports by Russia’s Rosatom, although the Russian state nuclear corporation paid a higher average price. Rosatom imported 4,790 tons of uranium for $924 million, resulting in an average price of $87.5 per pound compared to China’s $69 per pound.

Industry experts attribute the price discrepancy to various factors, including potential spot market purchases by Rosatom for re-export after conversion and enrichment. Additionally, China’s reputation as a tough negotiator may have contributed to more favorable pricing terms.

The increased Chinese demand aligns with Kazakhstan’s position as the world’s leading uranium producer, accounting for 42% of global production in 2022. Kazatomprom, the national atomic company, produced 11,400 tons that year, with half of its output directed to Asian markets.

While China and Russia dominated uranium exports from Kazakhstan, accounting for 84.9% of the total, other significant buyers included French Orano (7.5%), American companies (5.9%), and Canadian Cameco (1.7%).

The uranium market has seen significant price fluctuations, with Kazatomprom reporting a 41% increase in average selling prices to $66 per pound in the first half of 2024. Spot prices experienced an even more dramatic rise of 73-78%, reaching $91-92 per pound.

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