nuclear-news

No sign of recovery in plummeting uranium market

No rebound for uranium seen as Japan idle plants Prices have sunk to the lowest in more than 7 years amid a glut of the radioactive metal and speculation Japan will delay restarting its nuclear reactors. MineWeb, Ben Sharples (Bloomberg) , 02 Aug 2013  (BLOOMBERG) Uranium prices are showing little sign of recovery after sinking to the lowest in more than seven years amid a glut of the radioactive metal and speculation Japan will delay restarting its nuclear reactors.

Prices may average $42.82 a pound this year, according to Morgan Stanley, while Bank of America Corp. is predicting $43.80. BMO Capital Markets, which cut its price estimate by 10 percent in July, forecasts $43 a pound. Uranium has averaged $40.94 so far in 2013 after sliding to $34.50 last month, the lowest since November 2005.

While Japanese power producers, including Tokyo Electric Power Co., are seeking to restart reactors as soon as possible as the cost of other fuels escalates, operations may not resume until next year, according to Deutsche Bank AG. That’s threatening to delay a rebound in demand for uranium, hurting miners such as Australia’s Paladin Energy Ltd. as supplies outstrip demand. There is about 60 million pounds of surplus uranium around the world, according to Cantor Fitzgerald LP.

“The process for restarts is clearly going to take some time,” said Jonathan Hinze, a senior vice president at Roswell, Georgia-based Ux, which provides research on the nuclear industry. “Japanese utilities are unlikely to require any new fuel until 2014 at the earliest. There is a realization that the uranium demand from Japan is unlikely to dramatically change anytime soon, especially this year.”

Price Weakness

Uranium for immediate delivery has dropped as much as 21 percent this year, extending a 17 percent decline in 2012, according to data from Ux. Prices slumped 12 percent in July, the biggest monthly loss since March 2011. They climbed as high as $152 in June 2007…

August 5, 2013 - Posted by Christina Macpherson | 2 WORLD, business and costs, Uranium