Antinuclear

Further threats to already unviable price of uranium

One step forward, two steps back for uranium: report, Mining.com  Andrew Topf | May 24, 2015 Uranium investors are being urged to exercise caution in the short term due to three events which could affect the prices of the nuclear fuel and the companies that mine it, according to a recent report by Dundee Capital Markets.

The three catalysts, says the report by three sector specialists at Dundee, relate to the highly significant restarts of Japanese nuclear reactors shut down after the Fukushima accident in 2011, and the activities of Japanese electric utility TEPCO.

Regarding TEPCO, there are media reports saying that TEPCO wants to sell some of its uranium inventory in order to cut costs and to counteract uncertainty over the restart of idled nuclear plants. The sales could represent 15 percent of spot volumes, or 3 percent of the total amount of uranium traded last year, with many fearing that is enough to flood the market and put downward pressure on the price. ……

The second driver that could affect the market negatively, is a recent decision by a Japanese court forbidding Kansai Electric Power (TSE:9503) from carrying out a plan to restart two idled nuclear reactors at Ohi north, near Osaka, because of their vulnerability to earthquakes……

The firm advises to stay away from Paladin Energy (TSX:ASX:PDN) …..http://www.mining.com/one-step-forward-two-steps-back-for-uranium-report/

May 26, 2015 - Posted by Christina Macpherson | Uncategorized