The uranium spot prices in 4Q12 decreased trading in the range of US$41-44/lb, from 3Q12 price range of US$47–50/lb.
The low uranium prices are causing deferrals in project expansions and approvals. Delays in reactor restarts in Japan have also hit demand. Surplus uranium supply and lower demand from the utilities, is believed to be the major disruptive force in the industry, thereby causing a decrease in uranium prices and depressing market capitalisations.
Despite reduced uranium spot prices, the long-term uranium prospects remain bullish. The average long-term consensus price is expected to gain momentum from 2013.
Also in this report:
- Supply and demand
- Key developments
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Other 2012 Q4 Quarterly Commodity Bulletins: