In the first seven months of 2024, China significantly increased purchases of natural uranium in Kazakhstan, and the country accounted for the largest share of its exports. Rosatom reduced imports, but paid more. In the market, this is attributed to the fact that significant volumes can be purchased at a spot price for re-export after conversion and enrichment of uranium.
In January-July 2024, Kazakhstan exported 12 thousand tons of uranium (net weight) and 45% went to China. Such data are obtained from the materials of the National Bureau of Statistics of Kazakhstan.
China is actively developing nuclear energy and the country's authorities only in August approved the additional construction of 11 nuclear reactors over five years.
"China has increased purchases in physical terms (+21%) and in monetary terms (+72%) over the year," the telegram channel of the Kazakhstan First credit bureau Data Hub reports. They noted that at the same time, Rosatom paid the most for Kazakh uranium.
"At the annual level, the total cost of supplies increased by 23%, although physically exports fell by about the same amount. The average cost of 1 kg of uranium, respectively, soared (+63%)," the Data Hub reports.
According to Kazakh statistics, Rosatom imported 4.79 thousand tons of uranium for $ 924 million, and the Chinese National Nuclear Energy Group (CGNM) — 5.44 thousand tons for $ 822 million. As a result, the average price per pound for Russia turned out to be $ 87.5, and for China - $ 69.
Kazatomprom reported in the results for the first half of the year that the average selling price of the group increased by 41% to $ 66 per pound, and spot - by 73-78% to $91-92.
A source in the nuclear industry noted to EADaily that Russia meets most of its domestic needs with its own production, and imports are used for conversion, enrichment and further sale abroad. This may be the reason for higher prices for Rosatom, which can purchase part of the volumes at the spot price. Despite the fact that China started shipping only in April, when the world spot price of uranium began to decline, whereas in Deliveries to Russia went every month except March.
In addition, the interlocutor said, Rosatom companies are co-owners of joint ventures in Kazakhstan and also earn on the extraction and export of natural uranium.
It also cannot be ruled out that more attractive conditions apply to China, since the country's companies are considered tough negotiators.
In January-July, China and Russia accounted for 84.9% of uranium exports from Kazakhstan. The rest was received by French Orano (7.5% of deliveries), American companies (5.9%) and Canadian Cameco (1.7%). The average price of the pound was $61.5 for the United States, $79.5 for France and $56 for Canada.
According to the annual report of the Kazakhstan national company, in 2022 Kazakhstan accounted for 42% of world uranium production. At the same time, the share of Kazatomprom itself 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. Based on the production capacity, 40% of Kazatomprom enterprises worked with Rosatom, 15% with Canadian Cameco, 12% each with Chinese 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 Budenovsky deposit were owned by 49% by Stepnogorsk Mining and Chemical Combine LLP. The media reported that in December 2022 the plant was bought by a company from the Rosatom group. The price could be $ 1.6 billion.