Uranium market price

Abstract

The market price of uranium is an important barometer of the perceived balance between uranium supply and demand. Sharp increases in the market price suggest potential or perceived supply shortages, thus the need for increased prices to stimulate new supply. Conversely, declining prices indicate a real or perceived supply surplus. The net effect of falling prices is to force a scaling back of the production industry including possible closure of marginal producers to bring supply into balance with demand. In both cases perception of the supply/demand balance is highlighted to emphasise that the uranium market, like all commodity markets, is in part controlled by emotion and in part by hard facts. At any point in time the utility industry’s perception of the adequacy of supply translates into the reality of the market.