While the demand for commodities in China without a doubt has been weak, that doesn't mean China isn't a buyer in this market, because it is.
What must be understood is the demand now isn't domestic or for exports, but from the fact the prices have fallen so much, China, as it has done historically, is buying up the resources at bargain prices.
When measured by customs data, there are at least 21 commodities China has increased imports in by over 20 percent in July, according to Reuters.
Agricultural imports were especially strong, "with wheat up 158 percent, barley by 67.9 percent, corn by 1,184 percent, cassava by 28.5 percent, rice by 78.2 percent, soy oil by 25.8 percent, palm oil by 53.3 percent, natural rubber by 70.1 percent and sugar by 72.7 percent."
Crude oil imports jumped 29.3 percent in July.
Metals were also strongly represented. Molybdenum imports climbed 139.8 percent; uranium was up 227 percent; zinc ores up 84.5 percent, and silver up 63.3 percent, among others.
Among major commodities, copper ore and concentrates increased 7.2 percent, and iron ore imports were up a modest 4.4 percent.
What was also interesting in this was China's decision to increase imports at a time its currency was extremely weak. While low prices were definitely a part of the impetus, a declining yuan also had to play a part. If the currency loses more value, the cost of imports would rise even if commodity prices remained stable.
It looks like China was pressed into acquiring the depressed commodities before its currency weakened further. Or course China knows what its policy is going to be, and it's possibly a nod to further debasing of its currency after it buys the commodities it wants at low prices.
Showing posts with label Uranium. Show all posts
Showing posts with label Uranium. Show all posts
Tuesday, August 25, 2015
Saturday, June 1, 2013
Denison Mines Ready for the Uranium Rebound
Of all the publicly traded companies with exposure to uranium, my favorite is Denison Mines (DNN). It has put itself in solid position to generate some serious growth when the price of uranium resumes its upward trajectory.
Before we get into it, Denison isn't my favorite just because it's trading below $2.00 a share and is assumed to have great upward potential for that reason only. After all, there are many companies trading at these levels because that's all they're worth.
continue reading ...
Before we get into it, Denison isn't my favorite just because it's trading below $2.00 a share and is assumed to have great upward potential for that reason only. After all, there are many companies trading at these levels because that's all they're worth.
continue reading ...
Tuesday, May 7, 2013
Hidden Secret of Uranium Success Going Forward
It is imperative when looking at specific sectors like uranium, which can move in and out of favor quickly because of temporary setbacks, to take a deep breath and contemplate whether or not negative conditions are temporary or truly detrimental to an industry over the long term.
That's the case with nuclear power and uranium, which have suffered bad press from the unfortunate accident in Fukushima, putting the sector in a temporary tailspin.
See this explosive revelation of Uranium's "Dirty Little Secret."
That's the case with nuclear power and uranium, which have suffered bad press from the unfortunate accident in Fukushima, putting the sector in a temporary tailspin.
See this explosive revelation of Uranium's "Dirty Little Secret."
Monday, January 28, 2013
Cameco (CCJ), Denison (MKT), Uranium One (UUU) Could Soar on Uranium Demand
Contrary to official announcements from some nations, demand for nuclear energy, and by extension uranium remains high, and companies such as Cameco Corp. (NYSE: CCJ), Denison Mines Corp. (NYSE:DNN) and Uranium One Inc. (TXS: UUU) could to very well as the fly under the radar created by the official illusion that countries are moving away from nuclear energy.
Germany and Japan are the major countries in question, where they have made it appear they are using other energy sources, when in fact they're mostly importing electricity that is generated by nuclear energy.
The Energy Report asked expert Matt Badiali about the nuclear-free announcements by the two countries.
He responded saying this:
Badiali sees uranium climbing as high as $100 a pound and higher based upon the reality that miners producing uranium do so at the cost of about $106 a pound. They are getting paid about $40 a pound as of this writing, so the idea they'll continue to charge costumers at a loss of around $66 a pound is ludicrous. The price of uranium will rise over time, and those positioned to take advantage of that should reap solid rewards.
Besides the share price of some of these companies going up because of an increase in the price of uranium, another play is to look for companies ripe for a takeover in the current low uranium price environment. It's the optimal time for a buyout, as the prices will start to go up, making it a surety that mergers and acquisitions in the sector are going to happen.
Germany and Japan are the major countries in question, where they have made it appear they are using other energy sources, when in fact they're mostly importing electricity that is generated by nuclear energy.
The Energy Report asked expert Matt Badiali about the nuclear-free announcements by the two countries.
He responded saying this:
In both cases, the governments are playing politics. In Germany, the government was reacting to negative press and in Japan, which had just experienced a serious natural disaster. The Japanese government told people for decades that nothing of that sort could ever happen, that the nuclear reactors were completely impervious to natural disasters. That put them in a position where if they tried to make any improvements, they would lose face. They backed themselves into a corner and the only solution seemed to be to turn off the reactors. But the reality is that Japan needs nuclear energy. Without it, liquefied natural gas (LNG) imports have soared and the country doesn't have the infrastructure to move it around. The result was a horrendous summer of spiking electricity prices and rolling brownouts; it was bad news.
Germany used the Fukushima disaster and the negative sentiment that followed to push through a carbon-free agenda. What is really ironic is that Germany is not in a place that gets earthquakes or tsunamis. It is not at any risk for that. It also isn't a place where solar power works really well. Turning off the nuclear plants leaves the country without adequate energy generation infrastructure, so they increased imports of electricity from France. However, over 75% of France's electricity is generated by nuclear power plants. So really all they did was outsource their nuclear reactors. At the same time, they brought on an enormous amount of coal power, which is the single-worst contributor of carbon dioxide. It was politics at its finest.
Badiali sees uranium climbing as high as $100 a pound and higher based upon the reality that miners producing uranium do so at the cost of about $106 a pound. They are getting paid about $40 a pound as of this writing, so the idea they'll continue to charge costumers at a loss of around $66 a pound is ludicrous. The price of uranium will rise over time, and those positioned to take advantage of that should reap solid rewards.
Besides the share price of some of these companies going up because of an increase in the price of uranium, another play is to look for companies ripe for a takeover in the current low uranium price environment. It's the optimal time for a buyout, as the prices will start to go up, making it a surety that mergers and acquisitions in the sector are going to happen.
Tuesday, August 31, 2010
Uranium One (TSE:UUU) Plus Russia Equals Success
Although there has been some trepidation over Uranium One (TSE:UUU) selling control of the company to Russia's state-owned Rosatom, when you take a look at the probably outcomes and positive, it's a good move for the uranium miner.
In the last quarter Uranium One revealed solid production numbers, and with the Russians controlling the company, should do better going forward.
The primary uranium asset held by Uranium One is in Kazakhstan; a very volatile and unpredictable country and region.
With the high quality of the uranium ore and the low costs of mining already in place, Uranium One is already a player in the field. That's not what Russia brings, as the company already has that.
What Russia brings is a guaranteed market in place, along with the better ability to influence people in the area, if things go bad for some reason.
That means a more predictable and stable situation that now exists in the geopolitical sense, which brings more confidence and sustainable revenue and earnings from the projects there.
In the short term this also makes Uranium One among the few uranium miners who could be profitable. Most others are in a good position, but will generate revenue and profits in the long term more than the short term.
Uranium One is positioned to do both, assuming shareholders vote for the change in control, which is very likely.
In the last quarter Uranium One revealed solid production numbers, and with the Russians controlling the company, should do better going forward.
The primary uranium asset held by Uranium One is in Kazakhstan; a very volatile and unpredictable country and region.
With the high quality of the uranium ore and the low costs of mining already in place, Uranium One is already a player in the field. That's not what Russia brings, as the company already has that.
What Russia brings is a guaranteed market in place, along with the better ability to influence people in the area, if things go bad for some reason.
That means a more predictable and stable situation that now exists in the geopolitical sense, which brings more confidence and sustainable revenue and earnings from the projects there.
In the short term this also makes Uranium One among the few uranium miners who could be profitable. Most others are in a good position, but will generate revenue and profits in the long term more than the short term.
Uranium One is positioned to do both, assuming shareholders vote for the change in control, which is very likely.
Monday, August 23, 2010
Goldman Sachs (NYSE:GS) Newest Nuclear Power
With the acquisition of the commodities-trading operations of Constellation Energy Group (NYSE:CEG) in 2009, Goldman Sachs (NYSE:GS) became the recipient of a stash of uranium.
Nuclear reactors are becoming a fast and growing part of the strategy of many nations to provide energy, and uranium is becoming a hot commodity in a way it hasn't been for a long time.
Dozens, and more, of new reactors have been targeted for being built, and now the question of uranium supply is in the forefront of many people's minds, as a renewed race for nuclear energy emerges.
Goldman's uranium supply has drawn the interest of a growing number of entities, especially some of their larger clients, underscoring the quiet but growing fight for supply.
In regard to that, uranium companies have received significant investment over the last quarter, in anticipation of what will eventually become a perfect supply and demand situation where supply won't be able to keep up with demand, which will push up the price of uranium and companies that supply it.
I wonder if Goldman will sell now or hold on until the demand part of the equation soars?
Nuclear reactors are becoming a fast and growing part of the strategy of many nations to provide energy, and uranium is becoming a hot commodity in a way it hasn't been for a long time.
Dozens, and more, of new reactors have been targeted for being built, and now the question of uranium supply is in the forefront of many people's minds, as a renewed race for nuclear energy emerges.
Goldman's uranium supply has drawn the interest of a growing number of entities, especially some of their larger clients, underscoring the quiet but growing fight for supply.
In regard to that, uranium companies have received significant investment over the last quarter, in anticipation of what will eventually become a perfect supply and demand situation where supply won't be able to keep up with demand, which will push up the price of uranium and companies that supply it.
I wonder if Goldman will sell now or hold on until the demand part of the equation soars?
Tuesday, May 18, 2010
Cameco (TSE:CCO) China Uranium Opportunity
Leading Canadian uranium producer Cameco Corp. (TSE:CCO)(NYSE:CCJ) should benefit strongly from the growing economic ties between Canada and China, as leaders of three Canadian provinces head to the middle kingdom to drum up even more business.
Alberta, Saskatchewan and British Columbia are represented by the contingent, and they're loaded with resources ready and available to those willing to invest in them, and China is definitely the leading country with demand for commodities at this time.
Executives from Cameco are traveling with Saskatchewan premier Brad Wall, meeting with the largest nuclear power firm in China, which is looking to expand to meet the growing energy needs of the country.
Uranium reserves in Saskatchewan account for 26 percent of global production, making the province the top choice for those needing the material for nuclear energy.
Cameco should profit greatly if some deals are struck, which is highly likely, as Canada is doing business right with the Chinese by removing bureaucracy and making quick deals ahead of their competitor nations who try to impress the world by making it hard to do business with the Chinese.
Alberta, Saskatchewan and British Columbia are represented by the contingent, and they're loaded with resources ready and available to those willing to invest in them, and China is definitely the leading country with demand for commodities at this time.
Executives from Cameco are traveling with Saskatchewan premier Brad Wall, meeting with the largest nuclear power firm in China, which is looking to expand to meet the growing energy needs of the country.
Uranium reserves in Saskatchewan account for 26 percent of global production, making the province the top choice for those needing the material for nuclear energy.
Cameco should profit greatly if some deals are struck, which is highly likely, as Canada is doing business right with the Chinese by removing bureaucracy and making quick deals ahead of their competitor nations who try to impress the world by making it hard to do business with the Chinese.
Thursday, April 1, 2010
Uranium a Long-term Play
Long term future of Uranium
There is no doubt uranium is going to rebound in the future, as demand will skyrocket at a time when supply will not be able to meet that demand.
Approximately 200 new nuclear reactors are scheduled to be built around the world, and including the 400 plus already out there, uranium will be needed to power them up for a long time to come.
In the short term though, uranium spot prices seem to have found a bottom at around $40, with maybe $45 being the top in the foreseeable future. There is little to indicate that will change in the next year or so, although there are some possibilities that could change that quickly.
For example, the major game-changer would be if China decides to go after uranium before the anticipated upswing in prices occur. While that would drive up prices some, it wouldn't be the same as if a large number of countries or companies were going after it at the same time.
China has done this with other raw materials in the past, and there's nothing to indicate they wouldn't do it again. If they do choose to go that route, then all bets are off on the prices mentioned about, and if they don't do that any time soon, prices should be tight around the figures mentioned.
Uranium is definitely a long term play, but for those looking to get into over a period of time, these prices are a good starting point, and they will only rise in the future.
Companies, indexes, futures and ETFs are all ways to invest in this increasingly important commodity.
There is no doubt uranium is going to rebound in the future, as demand will skyrocket at a time when supply will not be able to meet that demand.
Approximately 200 new nuclear reactors are scheduled to be built around the world, and including the 400 plus already out there, uranium will be needed to power them up for a long time to come.
In the short term though, uranium spot prices seem to have found a bottom at around $40, with maybe $45 being the top in the foreseeable future. There is little to indicate that will change in the next year or so, although there are some possibilities that could change that quickly.
For example, the major game-changer would be if China decides to go after uranium before the anticipated upswing in prices occur. While that would drive up prices some, it wouldn't be the same as if a large number of countries or companies were going after it at the same time.
China has done this with other raw materials in the past, and there's nothing to indicate they wouldn't do it again. If they do choose to go that route, then all bets are off on the prices mentioned about, and if they don't do that any time soon, prices should be tight around the figures mentioned.
Uranium is definitely a long term play, but for those looking to get into over a period of time, these prices are a good starting point, and they will only rise in the future.
Companies, indexes, futures and ETFs are all ways to invest in this increasingly important commodity.
Wednesday, March 31, 2010
Market Vectors Nuclear Energy ETF (NYSE:NLR) - Great Uranium Play
Market Vectors Nuclear Energy ETF
We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.
For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.
Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.
In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.
I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.
Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.
This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.
Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.
Market Vectors Nuclear Energy ETF
We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.
For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.
Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.
In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.
I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.
Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.
This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.
Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.
Market Vectors Nuclear Energy ETF
Tuesday, March 16, 2010
Illinois Removes Nuclear Plant Ban
Illinois removes nuclear plant ban
Seeing the handwriting on the wall, states are seriously started to look at increasing the use of nuclear power to meet their electrical needs, and the Illinois Senate voted on Monday to remove the ban on building new nuclear plants in the state; that after 23 years of forbidding new plants to be built.
In one hilarious response from an obviously disturbed and fearful person, they implied it would turn the state into a “radioactive waste repository.” Evidently the so-called activist hasn't heard you can now recycle nuclear waste and re-use it. Even if you couldn't it would still be very safe.
The measure passed by an overwhelming 40-1, and it now goes to the Illinois house for approval. Billions of dollars and many jobs are at stake for those wanting to get their share of the federal dollars being allocated for the building of the nuclear plants.
It's actually far past time nuclear power was re-introduced into the United States. The stupid and wasteful solar and wind power garbage does't work on a large scale, and nuclear is among the best there is out there.
Be on the lookout for uranium-producing companies, as they will be hot in the future as demand for the commodity surges.
Seeing the handwriting on the wall, states are seriously started to look at increasing the use of nuclear power to meet their electrical needs, and the Illinois Senate voted on Monday to remove the ban on building new nuclear plants in the state; that after 23 years of forbidding new plants to be built.
In one hilarious response from an obviously disturbed and fearful person, they implied it would turn the state into a “radioactive waste repository.” Evidently the so-called activist hasn't heard you can now recycle nuclear waste and re-use it. Even if you couldn't it would still be very safe.
The measure passed by an overwhelming 40-1, and it now goes to the Illinois house for approval. Billions of dollars and many jobs are at stake for those wanting to get their share of the federal dollars being allocated for the building of the nuclear plants.
It's actually far past time nuclear power was re-introduced into the United States. The stupid and wasteful solar and wind power garbage does't work on a large scale, and nuclear is among the best there is out there.
Be on the lookout for uranium-producing companies, as they will be hot in the future as demand for the commodity surges.
Friday, March 12, 2010
Cameco (TSE:CCO) Strongly Positioned for Nuclear Revival
Cameco Ready for Nuclear Revival
There is no doubt we're entering into an amazing time of nuclear revival for generating electricity, and one company positioned to take advantage of that is Cameco Corp (TSE:CCO).
Less than honest evaluations of the nuclear industry and safety has held back the much-needed source of electricity, but that has changed as France has shown that uranium, the chief fuel for nuclear plants can be safely recycled, and eliminates one major concern for the sector.
Another fuel that will probably gain acceptance going forward is thorium, which gives a more efficient burn than uranium and lowers the need for recycling.
For Cameco, they recently mentioned their uranium mine at Cigar Lake should produce up to 18 million pounds of fuel a year when it reaches full production.
Cameco Ready for Nuclear Revival
There is no doubt we're entering into an amazing time of nuclear revival for generating electricity, and one company positioned to take advantage of that is Cameco Corp (TSE:CCO).
Less than honest evaluations of the nuclear industry and safety has held back the much-needed source of electricity, but that has changed as France has shown that uranium, the chief fuel for nuclear plants can be safely recycled, and eliminates one major concern for the sector.
Another fuel that will probably gain acceptance going forward is thorium, which gives a more efficient burn than uranium and lowers the need for recycling.
For Cameco, they recently mentioned their uranium mine at Cigar Lake should produce up to 18 million pounds of fuel a year when it reaches full production.
Cameco Ready for Nuclear Revival
Monday, March 1, 2010
Investing in Market Vectors Nuclear Energy ETF (NYSE:NLR)
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Nuclear energy is on the verge of making a huge comeback, and along with it will be those who understand the best ways to invest in uranium, which will struggle to supply the growing demand for the material.
America is going to bring some new nuclear reactors online, and the ever-demanding China has plans to build three times as many nuclear reactors to supply the needs of its people than the rest of the world combined.
Including nuclear reactor being planned, currently under construction, or in the approval stage, they number just under 500 across the world, showing the potential demand uranium will experience for years into the future.
One way to play this is through the Market Vectors Nuclear Energy ETF, which has a goal of mirroring the DAXglobal Nuclear Energy index as closely as possible after you take away various expenses and fees.
Another factor to keep in mind is the ETF has the normal practice of investing a minimum of 80 percent of its assets into global companies working in the nuclear energies business.
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Nuclear energy is on the verge of making a huge comeback, and along with it will be those who understand the best ways to invest in uranium, which will struggle to supply the growing demand for the material.
America is going to bring some new nuclear reactors online, and the ever-demanding China has plans to build three times as many nuclear reactors to supply the needs of its people than the rest of the world combined.
Including nuclear reactor being planned, currently under construction, or in the approval stage, they number just under 500 across the world, showing the potential demand uranium will experience for years into the future.
One way to play this is through the Market Vectors Nuclear Energy ETF, which has a goal of mirroring the DAXglobal Nuclear Energy index as closely as possible after you take away various expenses and fees.
Another factor to keep in mind is the ETF has the normal practice of investing a minimum of 80 percent of its assets into global companies working in the nuclear energies business.
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Wednesday, February 3, 2010
First Uranium (FIU.TO) Worst Uranium Company in World
First Uranium
First Uranium (FIU.TO) has the dubious distinction of being the worst uranium company in the world, and recent news from the company does nothing to alleviate that well-earned title.
The performance of the company is so bad it has downwardly revised uranium output forecast three times since the end of 2008, which has resulted in an incredible 75 percent cut in estimated uranium production since just April 2008.
Projections for gold production haven't been much better for First Uranium either, as it has cut estimates for 2011 to 190,000 ounces, a 63 percent plunge from the 507,000 originally projected.
For MWS, gold production is donw 65 percent for both 2011 and 2012, with expectations standing at 57,000 ounces for 2011 and 64,000 ounces for 2012.
The bad news keeps on coming for First Uranium, as they could end up having to pay a $42 million penalty to Gold Wheaton Gold Corp (GLW.V) if they aren't able to pass a technical completion test by June 1.
After all is said and done, First Uranium needs capital, which gets harder to attain when they're as far off as they are with mining production estimates and making deals like they did with Gold Wheaton.
First Uranium
First Uranium (FIU.TO) has the dubious distinction of being the worst uranium company in the world, and recent news from the company does nothing to alleviate that well-earned title.
The performance of the company is so bad it has downwardly revised uranium output forecast three times since the end of 2008, which has resulted in an incredible 75 percent cut in estimated uranium production since just April 2008.
Projections for gold production haven't been much better for First Uranium either, as it has cut estimates for 2011 to 190,000 ounces, a 63 percent plunge from the 507,000 originally projected.
For MWS, gold production is donw 65 percent for both 2011 and 2012, with expectations standing at 57,000 ounces for 2011 and 64,000 ounces for 2012.
The bad news keeps on coming for First Uranium, as they could end up having to pay a $42 million penalty to Gold Wheaton Gold Corp (GLW.V) if they aren't able to pass a technical completion test by June 1.
After all is said and done, First Uranium needs capital, which gets harder to attain when they're as far off as they are with mining production estimates and making deals like they did with Gold Wheaton.
First Uranium
Monday, February 1, 2010
Uranium About to Heat Up?
Nuclear Reactors and Uranium Demand
According to the US Nuclear Regulatory commission, demand for and permission to build nuclear reactors in the U.S. has skyrocketed, and that could eventually result in a huge increase in demand for uranium.
Now that nuclear power is being encouraged and considered an increasingly important part of American energy policy, uranium could be a major beneficiary of that reality as demand should surge as nuclear reactors are built and come online.
According to the US Nuclear Regulatory commission, there have been requests for 26 new reactors to be built in the country, with six of them already being ordered. There are 104 commercial nuclear reactors operating in the United States, supplying almost 20 percent of the electricity of the nation.
The good news is also the United States has the fourth-largest amount of uranium under its soil, making it extraordinary that it isn't being used to propel the nuclear industry forward to meet the growing energy demand in the country.
As far as what type of effect this will have on uranium prices, there can be no doubt what that will be. Uranium demand will increase; it's only a matter of when and how much.
Nuclear Reactors and Uranium Demand
According to the US Nuclear Regulatory commission, demand for and permission to build nuclear reactors in the U.S. has skyrocketed, and that could eventually result in a huge increase in demand for uranium.
Now that nuclear power is being encouraged and considered an increasingly important part of American energy policy, uranium could be a major beneficiary of that reality as demand should surge as nuclear reactors are built and come online.
According to the US Nuclear Regulatory commission, there have been requests for 26 new reactors to be built in the country, with six of them already being ordered. There are 104 commercial nuclear reactors operating in the United States, supplying almost 20 percent of the electricity of the nation.
The good news is also the United States has the fourth-largest amount of uranium under its soil, making it extraordinary that it isn't being used to propel the nuclear industry forward to meet the growing energy demand in the country.
As far as what type of effect this will have on uranium prices, there can be no doubt what that will be. Uranium demand will increase; it's only a matter of when and how much.
Nuclear Reactors and Uranium Demand
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