Nuclear Energy’s Limp Causing Uranium Prices to Stumble

Iron vessel of nuclear reactor.

When the March 2011 earthquake and tsunami knocked out Japan’s Fukushima nuclear reactors, they also took down the price of uranium. The hesitance to resume nuclear operations not only in Japan but also elsewhere in the world has caused the demand for the nuclear feedstock to diminish.
Indeed, uranium prices have fallen from about $68 a pound before the nuclear crisis to $47 per pound as of September 2012, which is the lowest they have been in two years. Analysts had anticipated such a slump but had also said that the rising demand in, especially, Russia, China and India would, again, necessitate the increased development of uranium. Altogether, 95 reactors are planned in the next two decades, says Canada’s Cameco Corp., which adds that 60 are now under construction around the globe.
“Overall, the uranium market conditions continues to be in wait and see mode as utilities are generally well covered for the next few years, and suppliers are similarly heavily committed,” says Cameco, in its quarterly report to shareholders. “However, we have seen the emergence of some long-term contracting over the past few months.”http://energyandnuclear.com/2012/09/26/nuclear-energys-limp-causing-uranium-prices-to-stumble/

Source – http://www.forbes.com/sites/kensilverstein/2012/09/24/nuclear-energys-limp-causing-uranium-prices-to-stumble/#

Wednesday, September 26, 2012