The long term fundamentals of the uranium market remains solid and robust despite the temporary dislocation in the market caused by the tragedy that occurred at the Fukushima nuclear plant in Japan.
These comments and other observations on the current state of the uranium market were released by Amir Adnani, the President and CEO of Uranium Energy Corp. (UEC), as part of the company’s midyear update.
Nuclear power generation is still the best solution to the energy needs of the world’s rapidly increasing population as the technology is low cost and does not generate harmful greenhouse gases. Although demand for uranium will be reduced due to the German plan to close its reactors by 2022, this capacity reduction will be offset by numerous expansion as many emerging economies see the value in nuclear generation.
China alone has 27 nuclear plants under construction and another 52 plants being planned. By 2020, China will have added five times the capacity that Germany is shutting down. More than 65 new nuclear plants are under construction and another 155 are in the planning stage worldwide.
This fundamental outlook on the uranium market by Uranium Energy Corp. is supported by current prices. The spot price of uranium is $54.50 per pound, still far above the $40 per pound at this time last year. The term price is $68 per pound, down only slightly from before the events at the Fukushima plant.
For more information on the company, go to www.uraniumenergy.com
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