|4/19/2017 by mdc|
|Mary Jane Fountain opines on the nature of the uranium market and provides a summary, as follows ...|
1. Despite negative sentiment from Fukushima, analysts say uranium fundamentals support rising prices.
2. The World Nuclear Association says a 100% increase in international power stations is being either planned or proposed, 160 already being planned.
3. The price of uranium got off to a good start in 2017, but has it fizzled out? The ETF chart for the stock URA suggests not, and it is just correcting the February high.
4. According to several analysts the demand supply fundamentals for uranium should weigh on the demand side into 2020, with the world becoming increasingly more rather than less reliant on nuclear energy. Analysts are generally bullish, and uranium has made a solid advance from the price floor created in November 2016.
5. David Talbot an analyst at Dundee capital markets, is forecasting a 6% annual growth in uranium demand through 2020, saying that up to 20% of demand is not covered from current production for the worlds existing 437 nuclear reactors.
6. Morningstar analyst David Wang predicts prices will rise to about $65 a pound by 2019.
7. MINING.com suggests that the period from 2017-2020 will be a landmark period for the nuclear industry and uranium stocks, as the global operating nuclear reactor fleet expands, and
8. The 2011 disaster at Fukushima created an irrational disconnect between sentiment and uranium fundamentals.
9. Scientific American opines that nuclear energy clean bonafides may be its saving grace in a wobbling global energy market that is trying to balance climate change ambitions, skittish economies and low prices for oil and natural gas.
10. In all, over 160 power reactors with a total net capacity of some 182,000 MWe are planned and over 300 more are proposed. Energy security concerns and greenhouse constraints on coal burning have combined with basic economics to put nuclear power back on the agenda for expansion.