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Record 11 year low for uranium price

Uranium Price Falls to 11-Year Low, Economic Calendar,  July 21, 2016, Despite bullish forecasts for uranium in the years ahead, the commodity continues to languish in the aftermath of the Fukushima nuclear disaster. Shortly after the earthquake in Japan caused the disaster at the Fukushima Daiichi nuclear plant, uranium prices crashed on the expectations, and reality that countries around the world would shun nuclear power as a source of energy…..

Although uranium analysts changed their sentiment from negative to positive, uranium prices till floundered. This is because, in reality, the ramp-up of nuclear power plants was much slower than anticipated and at the same time stockpiles of the commodity remained high. Ahead of the nuclear disaster, there was a ramp up in global uranium production with the price of uranium reaching a record high of $70 a pound, which spurred increased investment and production increases around the world. After the nuclear disaster, uranium demand came to a virtual stand still, leaving an oversupplied market.

Now, these stockpiles are being worked down, and there is little incentive for new production. In fact, many companies have slashed production as weak pricing has impacted the economics of uranium mining. On Monday, according to Ux Consulting, uranium prices fell to an 11-year low. Uranium is also finding new competition for an energy source thanks to the increase in availability and decrease in the price of natural gas….

July 23, 2016 - Posted by | general

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