Uranium: Demand Expected to Remain Constant Despite Drop in Price

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RBC Capital Marketsí Adam Schatzker does think spot prices could soon reach the top of the cost curve with cash costs for some producers possibily in the high-$60 to low-$70 range. But this does not guarantee any price resistance.

The spot price for uranium continues to fall as supplies quickly meet demand. Ux Consulting reported prices falling $3 to $65 per pound, while TradeTech said they dipped $4 to $65.

But calling a near-term bottom remains a challenge since there is a limited history of uranium trading at these levels, according to RBC Capital Marketsí Adam Schatzker. He does, however, think spot prices could soon reach the top of the cost curve with cash costs for some producers possibily in the high-$60 to low-$70 range. But this does not guarantee any price resistance, the analyst told clients.

He said: "We think demand will likely remain relatively constant this year with month-to-month volatility and that any substantial upward spot price movement will likely be driven by lower supply, rather than higher demand."

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