Uranium prices have been in total freefall over the last 12 months, dropping from a record high of US$135 a pound to US$60 a pound. So is the bleeding over?
Desjardins Securities analysts John Redstone and John Hughes think it is. They're betting that prices will now settle down and average US$60 in the long term, because supply and demand are finally moving into balance.
"We expect supply growth to match our most aggressive demand growth profile, keeping total inventories well above adequate levels," they wrote in a note to clients.
However, they noted that there could still be plenty of volatility, as investment funds can hold up to 10,000 metric tonnes (KMT) of uranium, and any change in that "long" position could lead to turmoil in the spot market.
Desjardins Securities analysts John Redstone and John Hughes think it is. They're betting that prices will now settle down and average US$60 in the long term, because supply and demand are finally moving into balance.
"We expect supply growth to match our most aggressive demand growth profile, keeping total inventories well above adequate levels," they wrote in a note to clients.
However, they noted that there could still be plenty of volatility, as investment funds can hold up to 10,000 metric tonnes (KMT) of uranium, and any change in that "long" position could lead to turmoil in the spot market.
