Uranium Study Sees Flat Price into Early 2008

Source:

According to a study by Resource Capital Research (RCR) released today, market fundamentals are considered to remain robust with strong and increasing demand for new nuclear power reactors, especially from China, the United States, Russia, Ukraine and India.

The quarterly study by Resource Capital Research (RCR) released today shows uranium fund sentiment and activity remain important factors in the outlook for the spot uranium price.

The funds are thought to hold about 20 million lb of U3O8, which represents a significant percentage of the annual spot market volume, of about 18 M lb to 28 M lb.

This, RCR said, leaves the spot market price highly susceptible to further fund activity...

The market fundamentals are considered to remain robust with strong and increasing demand for new nuclear power reactors, especially from China, the United States, Russia, Ukraine and India.

RCR said the market valuation of Australian companies with one or more uranium projects was unchanged over the past month, up 21% over the past 3 months, and up 47% over the past 12 months.

This compares with a selection of 306 Canadian companies with one or more uranium projects, down 15% over the past month, up 5% over the past 3 months, and up 14% over the past 12 months.

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