A report issued final week by Morgan Stanley forecasts that uranium prices will average $52.25 a pound next year, an enlarge of 19 percent higher than this year. The expectation for analyst Peter Richardson and Joel Crane is that as new provide becomes available the demand for nuclear fuel will outpace manufacture capacity. Although it is certainly not the first predict for strengthening uranium prices, the message may send prices higher if utilities act sooner to try to build inventories before the impending inflationary force mounts. A nearly balanced uranium market makes prices “vulnerable to deliver shocks and/or new build announcements,” Richardson and Crane wrote.
The average spot price this year is 6 percent below the previous year and almost 30 percent lesser than the average in 2008, according to the report. “The steady, two year erosion in uranium prices has translate into difficult mining breakeven points, mostly for new uranium projects,” the analysts said. As of October 1, the countries with the leading number of planned and proposed new nuclear reactors are: China 159; India 60; Russia 44; USA 31; Ukraine 22; and South Africa 15. The report cites that demand from residential economies is also set to rise on “concerns over carbon emission expenses and energy supply security.”
The new plants will need 32,900 tonnes of nuclear fuel, almost half of the demand from this year’s 443 profitable reactors. Most of the demand growth will have to be meet by mines as secondary supplies from recycled Russian warheads may finish with the end of an international agreement in 2013. The mark price of uranium jumped 5.6 percent this week, growing $2.75 to $52.00 per pound as reported on Monday by UxC trade consultants. It has been a very busy month for Australian uranium mining welfare in Africa, with Paladin Energy taking a holding interest in NGM Resources. The market has reacted optimistically the news sending the share prices for Paladin 20 percent superior for the month of October to the current range of $4.39.
The average spot price this year is 6 percent below the previous year and almost 30 percent lesser than the average in 2008, according to the report. “The steady, two year erosion in uranium prices has translate into difficult mining breakeven points, mostly for new uranium projects,” the analysts said. As of October 1, the countries with the leading number of planned and proposed new nuclear reactors are: China 159; India 60; Russia 44; USA 31; Ukraine 22; and South Africa 15. The report cites that demand from residential economies is also set to rise on “concerns over carbon emission expenses and energy supply security.”
The new plants will need 32,900 tonnes of nuclear fuel, almost half of the demand from this year’s 443 profitable reactors. Most of the demand growth will have to be meet by mines as secondary supplies from recycled Russian warheads may finish with the end of an international agreement in 2013. The mark price of uranium jumped 5.6 percent this week, growing $2.75 to $52.00 per pound as reported on Monday by UxC trade consultants. It has been a very busy month for Australian uranium mining welfare in Africa, with Paladin Energy taking a holding interest in NGM Resources. The market has reacted optimistically the news sending the share prices for Paladin 20 percent superior for the month of October to the current range of $4.39.
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