Record low prices for uranium
Uranium spot prices descend beyond decade low
The descending uranium price has put global producers under pressure. by Tess Ingram Uranium spot prices are still likely to stage a rapid recovery on the back of improving demand, industry analysts and executives argue, despite a persistent supply glut driving prices to a largely unanticipated 11-year low.
Spot prices for uranium oxide, which is used mainly as fuel for nuclear reactors, crept below $US27 ($36) a pound in June for the first time since mid-2005.
The current levels are lower than when prices were sent spiralling after the Fukushima nuclear disaster. After hitting over $US130 a pound in 2007, prices had stabilised to about $US70 a pound at the beginning of 2011 before Fukushima sent them gradually declining to a low of $US28 a pound in May 2014. Prices increased in 2015 but have since slumped about 21 per cent year-to-date.
Argonaut analyst Matthew Keane said prices had persisted “a lot lower than a lot of people expected” and forecasts for the timing of an anticipated supply deficit needed to improve prices “keep getting kicked along”.
“We just haven’t got the reactors online and even though the Chinese build program is very aggressive, we haven’t caught up and really sucked away the inventory yet,” Mr Keane said. “The US and Europe are still sitting on adequate stockpiles.”…… http://www.afr.com/business/mining/uranium/uranium-spot-prices-descend-beyond-decade-low-20160705-gpyupv
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