A small event in a nuclear reactor the collision of a neutron with an atom of nuclear fuel triggers enormous energy through a powerful chain response. Something related happened in the uranium markets previous month. The small event was in China, where an official for the country's nuclear power agency give a speech in which he predictable China could build 112 gigawatts of nuclear ability by 2020. Though he stressed that 80 gigawatts was the more likely aim, that cautionary nuance was lost in conversion, and the price of uranium shot up to $65 a pound within a little days, after languishing near $40 a pound since the start of the global recession.
"That actually got people's juices going," says Edward Sterck, an analyst with BMO assets Markets. "It was a 'maybe' scenario, and when it got statement in the English press, they only reported that top line shape." To put the official's high estimate in perspective, 112 gigawatts is about a third of the world's current nuclear capacity, and 60% over the "high" estimate for China's growth forecast by the London-based World Nuclear Association last year. China is at present building 26 new reactors, more than twice as many as the nearest contender, Russia.
Although the Chinese official afterward played down the top line figure, uranium prices and the stocks of uranium producers have reserved their gains. This is mainly because people were previously seeing signs in the market that China is arrange for a bigger nuclear power growth than previously estimated. A week before the speech, China's biggest nuclear power utility signed a decade long conformity to purchase uranium from Areva SA, France's state own nuclear power company.
"That actually got people's juices going," says Edward Sterck, an analyst with BMO assets Markets. "It was a 'maybe' scenario, and when it got statement in the English press, they only reported that top line shape." To put the official's high estimate in perspective, 112 gigawatts is about a third of the world's current nuclear capacity, and 60% over the "high" estimate for China's growth forecast by the London-based World Nuclear Association last year. China is at present building 26 new reactors, more than twice as many as the nearest contender, Russia.
Although the Chinese official afterward played down the top line figure, uranium prices and the stocks of uranium producers have reserved their gains. This is mainly because people were previously seeing signs in the market that China is arrange for a bigger nuclear power growth than previously estimated. A week before the speech, China's biggest nuclear power utility signed a decade long conformity to purchase uranium from Areva SA, France's state own nuclear power company.
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