Are uranium prices making a comeback?
Uranium, the silvery radioactive metal, is a very important element because of its use in generating electricity in nuclear power stations. As the world moves on from the Fukushima disaster, nuclear power may be making a comeback and consequently, so may uranium prices. Nonetheless, the price is currently down around 25% from the same time last year having plummetted over 40% in 2016 according to a report by Frik Els of Mining.com. A uranium supply glut and falling demand along with negative sentiment based on a series of events in early 2017 has kept the price low, but analysts are becoming bullish on the medium and longer-term outlooks for uranium despite the metal still technically in a bear market.
Click on the image to see a larger version
In January, Kazakhstan, the world’s largest producer, announced that it would cut production by 5.2 million pounds in 2017, which amounts to 3% of global production. The decision was welcomed by markets as a necessary measure to ease the ongoing supply glut. However, a series of events, including Japanese utility Tepco’s cancelling of a key uranium supply contract with Cameco Corp. and the U.S. Department of Energy’s decision to cut uranium dispersion into the market, dampened the enthusiasm following Kazakhstan’s announcement. Nonetheless, Uranium prices have recovered moderately at the outset of Q3 after declining in the preceding quarter. On 7 July, uranium traded at USD 20.1 per pound, which was up 4.4% from the same day in June. The price was 0.7% lower on a year-to-date basis and was down 24.2% from the same day last year.
The recent see-saw in uranium prices is a result in part from traders’ wait-and-see approach given the complex supply and demand dynamics of the commodity. As mentioned previously, the short-term outlook is bleak with the market oversupplied and demand weak, but the longer-term outlook is more promising. The decision of Kazakhstan to cut output as well as the world seemingly moving on from the Fukushima disaster with nuclear reactors becoming operational around the world bodes well for the future.
Uranium Price Outlook 2017 & 2018
Demand is expected to firm up on the back of favorable supply and demand dynamics. New nuclear facilities are expected to become operational in the coming years and substantial output curbs will contribute to reducing the supply glut in the market and push prices higher. FocusEconomics projects that Uranium prices will average USD 25.9 per pound in Q4 2017 and USD 28.4 per pound in Q4 2018.
For more analysis and price outlooks for 33 key commodities look no further than the FocusEconomic Consensus Forecast report. You can download a sample by clicking on the button below.
5-year economic forecasts on 30+ economic indicators for 127 countries & 33 commodities.
Date: July 19, 2017
TagsMexico Investment Africa Asia Argentina Economic Growth (GDP) Venezuela Fed Portugal Nordic Economies Eastern Europe Banking Sector Vietnam Russia Financial Sector Major Economies Tunisia Company News Turkey precious metals Unemployment rate MENA United Kingdom Italy Japan Canada India oil prices NAFTA Panelists USA United States Spain IMF Inflation Housing Market World Bank UK Oil European Union Emerging Markets Ukraine Gold Industrial Metals Commodities France Latin America Greece Colombia Brexit OPEC Forex Trade Brazil Euro Area Agricultural Commodities Germany Energy Commodities Precious Metals Commodities Exchange Rate Infographic Australia Iran Commodities G7 Consensus Forecast China Base Metals Commodities South Africa Sub-Saharan Africa
ASEAN economy to see best result in years https://t.co/dtUEc8O6XM
3 hours ago
Find out what the key risk are to the Sub-Saharan Africa economy this year: https://t.co/3FJNSXuquV
7 hours ago
Korea’s housing reforms will impact the economy next year. Find out how https://t.co/WGy4yEEmva
19 hours ago
Sub-Saharan Africa GDP 2018 Forecast: analysts slash forecasts on political risks https://t.co/myw4vXbCDM
1 day ago
How will China’s upcoming National Congress of the Communist Party shape the economic and political future? https://t.co/0wYwPd07q7
1 day ago
- Emerging Markets Are Kicking Into Higher Gear In 2017
- Why is foreign direct investment in Latin America falling again?
- Are Central Banks Nationalising the Economy?
- Bounty or burden? The impact of refugees on European economies is far from clear
- What’s the future of U.S.-Latin America trade relations?
- Taxes or cutbacks? Latin America's challenge of sustaining spending without causing debt to skyrocket
- Are uranium prices making a comeback?
- Taxing the Economy: Achieving a Delicate Balance
- Is the UK really "shackled to a corpse"?
- How will Latin America’s upcoming lengthy election cycle affect the reform agenda and credit ratings?
- How will emerging market economies perform in 2017?
- Chilean Economy in Focus: Interview with Senior Economist of the Chamber of Commerce of Santiago
- CEOs Rank Top Economies for Growth Opportunities
- The Mobile Ecosystem & Latin America's Economy
- Prospects and Challenges for the Global Economy: Interview with Tim Cooper from BMI Research
- How will the Fed reduce its balance sheet & and how will the ECB end QE? - 19 economic experts weigh in
- Thoughts on "unwinding" QE from Frances Coppola
- Gold: The Most Precious of Metals (Part 3)
- The Fed and ECB at a crossroads: Unwinding QE
- Spain: The economy that continues to silence the critics
- Latin America: The Most Unequal Region in the World
- The History of OPEC: Has it been a Success?
- FocusEconomics Announces 2017 Analyst Forecast Awards Winners
- Latin America’s rising unemployment bucks nearly decade long trend
- Escape from the Central Bank Trap by Daniel Lacalle
- China's economic rebalancing act: What to look out for in 2017
- Driving Growth in Latin America: Challenges & Priorities
- Is the Global Economy Rebalancing?
- Commodity exporters face challenging times
- Recent Global Events Facilitate Mercosur-Pacific Alliance
- 23 economic experts weigh in: Why is productivity growth so low?
- Mexico's outlook as Trump nears 100-day mark
- Interview with Oxford Economics Senior Economist on implications of the possible outcomes of the French Presidential Election
- The anxiety of the small saver in a world of negative interest rates
- Brexit negotiations. Between Uncertainty and Urgency
- An Economic History of the EU from El Blog Salmón
- Baby Boomin': Implications of high population growth in Latin America
- Survey of International Economists Predicts a Le Pen Defeat in French Elections, Says Macron has Best Economic Plan
- Spain in a global context: developed economy with some challenges
- How much is crime costing Latin America?
- Predictions & Estimates from Economist Daniel Lacalle
- What economy will the new Dutch government inherit?
- “The data is not a true reflection of reality in India” Interview with Société Générale India Economist
- 2017 & 2018 Economic Outlook for the Top Oil Producing Countries
- Which countries will have the highest and lowest inflation in 2017?
- What are the prospects for Emerging Economies in 2017?
- What to expect in Asia for 2017
- Top Economics & Finance Blogs of 2017
- Latam to Resume Moderate Growth in 2017 but Important Risks Plague Outlook
- 4 Key European Elections That Will Impact the Economy in 2017
- How are security concerns and political chaos affecting Turkey’s economy?
- Global growth to edge up in 2017
- Set to breach targets again? Debt and deficit outlooks for Southern European Eurozone countries in 2016 & 2017
- What does Donald Trump mean for the U.S. economy?
- How will emerging markets perform in 2017?
- The economic impact of a break in U.S.-Philippines ties
- Trump election: Base metals surge due to infrastructure plan
- 5 updates on the Venezuelan economic crisis
- Canada: When your neighbor’s house is on fire…
- Short-term pain before long-term gain? A look at French labor reform and economic growth
- Asia: Unremarkable growth & unfulfilled promises?
- How India's latest monsoon is affecting the economy
- Russian economy update in wake of OPEC deal announcement
- Innovation in Latin America: Potential Goes Untapped Due to Weak Economic Conditions
- The Wisdom of the Crowds and the Consensus Forecast
- Can the peso predict the U.S. election results?
- There's no end in sight to the Venezuela crisis
- A Look at the European Union Political Calendar
- Survey of international economists shows uncertainty surrounding elections damaging U.S. growth prospects
- FocusEconomics partners with leading online statistics provider Statista
- China: Recent postive economic data may be papering over the cracks
- Sub-Saharan Africa's 2016 & 2017 growth rates
- The Italian Dilemma: Weak banks pose risk to already faltering domestic demand
- How much money do migrants from Latin America send home?
- The U.S.' (Not So) Mysterious Case of the Missing Men
- What to expect from the G20 economies by 2020
- The Pain in Spain: Robust GDP growth cannot mask the persistent structural deficit