Uranium glut indicates price will unravel further

Uranium Rally Threatened by Surplus as Mine Strike Eases Bloomberg, By Ben Sharples September 23, 2014 The rally in uranium spurred by speculation of further sanctions against Russia is poised to unravel as a supply surplus builds with the end of a labor strike at the world’s biggest mine in Canada……

The glut is forecast to continue for a sixth year even after production shutdowns from Australia to Africa and the strike at Cameco Corp.’s McArthur River operation in Canada…..

Market Glut

Cantor estimates a uranium market surplus of 13.2 million pounds in 2014 while Raymond James Ltd., a financial adviser, on Aug. 27 forecast an overhang of about 10 million…….

Paladin Energy Ltd. said it would close its Kayelekera operation in Malawi until uranium climbs above $70 a pound, while Russia’s Atomredmetzoloto shut the Honeymoon mine in Australia last year…….http://www.businessweek.com/news/2014-09-23/uranium-rally-threatened-by-surplus-as-mine-strike-eases