Uranium firms remain optimistic amid low demand

Uranium companies are staying upbeat given the strong long term fundamentals for uranium, as the number of nuclear reactors around the world increase, despite the weakening uranium price and low market activity. Year-to-date, 33.1 million lb of uranium oxide (U₃O₈) have changed hands on the spot market, roughly 15% less than last year. The number of deals has also dropped, write TD Securities analysts Greg Barnes and Craig Hutchison in an Oct. 21 note. The same is true for term demand. Given the continued soft demand, the uranium spot price has plunged 46% this year to close Oct. 31 at US$18.75 per lb U₃O₈ — its lowest point in 12 years. Over the same time, the long term price has fallen 18% to US$36 per lb. The sluggish demand is due to the slow restart of Japan’s nuclear reactors, reactor shutdowns in other countries and the slowing global economy, the World Nuclear Association (WNA) reports. Read the entire story at The Northern Miner.