The Australian Bureau of Agriculture and Resource Economics’ (ABARE) reports that the uranium price has been tipped to average $53/lb in 2007, representing a 14.5% year-on-year increase,according to Miningmx.com. ABARE forecasts price strength for uranium for at least two more years.
An expected decline in secondary uranium supplies is one the factors behind good prices, particularly from the Russian Federation, Abare said.
Secondary supplies have predominantly been sourced from the conversion of highly enriched uranium from disarmed nuclear weapons, government inventories and reprocessing. ABARE expects the supply from secondary sources to decline only marginally in 2006 and 2007. It foresees “substantial reductions” beyond 2013.
A further supply constraint is that world uranium consumption currently outstrips supply by more than 28,000 tons/year.
With the growing acceptance of nuclear power generation as an energy source – the only significant commercial use for uranium – ABARE predicts plenty of demand-side support for uranium in the near to mid-term future.
An expected decline in secondary uranium supplies is one the factors behind good prices, particularly from the Russian Federation, Abare said.
Secondary supplies have predominantly been sourced from the conversion of highly enriched uranium from disarmed nuclear weapons, government inventories and reprocessing. ABARE expects the supply from secondary sources to decline only marginally in 2006 and 2007. It foresees “substantial reductions” beyond 2013.
A further supply constraint is that world uranium consumption currently outstrips supply by more than 28,000 tons/year.
With the growing acceptance of nuclear power generation as an energy source – the only significant commercial use for uranium – ABARE predicts plenty of demand-side support for uranium in the near to mid-term future.
