More pain for uranium sector as price dips

Already battered by headwinds, as well as strong opposition from environmentalists, WA's fledgling uranium sector is set for additional grief amid expectation the nuclear fuel's low price will fall another 6 per cent inside the next few months analysts at consultancy Resource Capital Research say the forecast crash in uranium oxide spot price over the coming three to six months is despite what show to be sound long-term fundamentals for the industry.

However, the continued fallout beginning Japan's nuclear crisis and Germany's subsequent decision to close its 17 reactors by 2022 is probable to add downward pressure on the U{-3}O{-8} spot price, which, at $US48.85 ($46.16) per pound, is rear at levels seen immediately after the March tsunami trigger the Fukushima plant explosion the spot price was $US67.75/lb before the Fukushima crisis.

"The fund-implied price, an indicator of market value expectations looking out three to six months, points to a spot price of $US45.95/lb, reflecting expectations of possible new supply to enter the market and uncertainty over the point of potential Japanese and German utility surplus dispositions," RCR said in its uranium sector review the uranium sector have also been weighed down by broader macro-economic factors, such as concern concerning the state of the US and European economies.