nuclear-news

Analyst’s gloom on future of uranium market

Making the price collapse even worse, Uranium recently slumped to $28 per pound — the lowest level since June 2005.

This very low market price is significant because the vast majority of uranium mining operations around the world require a $60 per pound market price to continue mining profitably.

Evidence of how poor the outlook for uranium prices actually is…….

Uranium: The Green Metal Has Lost its Glow,Uncommon Wisdom Daily,   James DiGeorgia | June 10, 2014…….Japan Wants More Power  … Just Not Nuclear The Japanese public, more than three years after Fukushima, is STILL massively against re-opening ANY nuclear power plants. Japanese fears over nuclear power are well-founded, and shouldn’t be dismissed.

The panic and chaos of 160,000 Japanese as a result of the meltdown of three units of Fukushima Dai-Ichi Nuclear Reactor has only fanned their fears of nuclear power. These fears understandably linger after the devastation of Hiroshima and Nagasaki, which brought an end to the Second World War.

But that’s not all. The reality is, all of Japan is at risk for earthquakes and many of Japan’s reactors have been built with substandard designs and materials — all of which is frequently reinforced by Japan’s media……..

The Japanese government hasn’t helped to bolster public confidence, especially after a long series of egregious missteps it made in the aftermath of the Fukushima crisis.

As Reuters recently noted, a March survey shows that roughly 80% of the people in Japan would prefer to see the country move away from nuclear power……..

As for uranium … It’s become clear in the last 30 days that Uranium prices aren’t going anywhere..

A little over three weeks ago, a Japanese court ruled against Kansai Electric Power’s plans to initiate a restart plan for two idled nuclear reactors.

That’s when I realized it was time to consider reversing my bullish position on uranium.

It’s now very clear to me: Japan’s nuclear reactors aren’t going to be re-opened anytime soon…….The Japanese court couldn’t have been clearer. It ruled that the nuclear power plants are STILL potentially vulnerable to earthquakes and should NOT be re-opened.

This decision received a great deal of news coverage in Japan and only serves to further buttress public sentiment against re-opening Japan’s nuclear fueled utilities.

According to the Financial Times, this court decision …

“Could disrupt an already complicated, politically charged effort to restart some of the 50 Japanese reactors … “

While the FT held out the possibility the court might be overruled. It’s unlikely that Japan’s government is going to rush to counter the court’s decision — not with public sentiment so negative……..

While the intransigence over reopening Japan’s nuclear power plants has continued, uranium prices have continued to move lower.

Uranium for immediate delivery has averaged $33.93 so far this year, compared with $38.47 in 2013 and $46.27 in 2010.

Making the price collapse even worse, Uranium recently slumped to $28 per pound — the lowest level since June 2005.

This very low market price is significant because the vast majority of uranium mining operations around the world require a $60 per pound market price to continue mining profitably.

Evidence of how poor the outlook for uranium prices actually is (at least for the immediate future) also evidenced itself three weeks ago when Cameco (CCJ), the largest uranium mining company in North America, withdrew its applications to license the Millennium mine in Northern Saskatchewan.

The fact is, Cameco and many of the world’s uranium mines are cutting back, suspending or mothballing uranium projects because of the dismal market price for uranium.

Small mining firms are having an increasingly difficult time raising cash to continue even exploring for uranium — even on potentially rich properties. http://www.uncommonwisdomdaily.com/uranium-the-green-metal-has-lost-its-glow-18439

June 11, 2014 - Posted by Christina Macpherson | Uncategorized