Uranium Market Outlook - Q3, 2018 - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Feb 7, 2019--The “Uranium Market Outlook - Q3, 2018” report has been added to ResearchAndMarkets.com’s offering.
Eleven per cent of the World’s energy supply comes from 440 nuclear power plants, with 60 more reactors under construction and another 160 are planned around the world. With the world using more energy per person every decade, and an exponentially growing number of people, the demand for nuclear power will only increase in the decades ahead.
Uranium-produced radiation, moreover, is used to treat cancer, irradiate food against disease, study cells, detect flaws in metals and other structures, and create smoke detectors. Of course, it supplies the fuel for nuclear submarines and weapons, and the material for depleted uranium shells. In short, most of our lives will be shaped, and often saved, by uranium.
With all of these uses, uranium has a complex and rapidly-growing global market, and since 2005 the Uranium letter International has been one of the World’s finest sources of information for investing in the international uranium equity markets.
The most recent issue, for example, noted that the geopolitical shift from western to emerging countries has had a crucial effect on the uranium market; for example, strongly growing uranium demand from China and Russia will be mostly supplied by already existing international joint venture agreements with Kazakhstan.
In September 2015, Jonathan Hinze of UxConsulting Company (UxC) at the WNA Annual Symposium said that with global uranium inventories upwards of 1.1billion pounds U3O8 equivalent (423,100 tU) were likely to drive the uranium market for some time to come, affecting not just uranium suppliers, but also the conversion ad enrichment industries. At that time the U3O8 spot price and long-term price were $36.50/lb and $45.00/lb, respectively
Today, 3 years later, at prices of $26.20 and $31.50, respectively, China, Russia and India together are currently accounting for 30 reactors under construction and 72 reactors planned, representing 54% and 47% respectively of the world total. With the required uranium to feed future operational reactors, this is broadly seen as the key driver of a strong uranium price recovery.
Based on the current supply situation, with the USA with 99 reactors hosting 22% of the World’s 452 operable reactors and in 2017 having required 18,996 tonnes U (30% of the world total of 65,014 tonnes), according to the WNA, it is notable that Russia supplies 45.5% of US imports of enriched uranium and Canada 90.6% of natural uranium imports. This means that for the USA there is no urgent need to lower imports of more than 90% of the uranium it uses other than for political tensions.
The overview below of world nuclear power reactors and uranium required in 2017 confirms the dominance of the U.S. on nuclear energy generation and as such the provider if clean energy, despite an only limited added share of renewable’s.
Considering that globalization is creating a new economical world order, it is interesting to see which countries are supplying uranium. This is of crucial importance for the course of uranium pricing and is disturbing the long-awaited strong recovery to a pre-Fukushima price level of $65-70/lb to enable an economically viable production.
Anticipating a strong growth of nuclear reactors under construction and of planned reactors, led by China, Russia and India, which three emerging countries accounting for 54% of reactors under construction and 47% planned, it is important to know which countries will meet supply of the required uranium.
Companies MentionedA-Cap Resources Aura Energy Bannerman Resources Berkeley Energia Blue Sky Uranium Cameco Deep Yellow Forsys Metals GoviEx Kazatomprom Plateau Energy Metals U3O8 Corp UxConsulting Company Yellowcake
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PUB: 02/07/2019 08:08 AM/DISC: 02/07/2019 08:08 AM