SubscribeTight Uranium Market Through 2010
There may be a big mushroom cloud of concern overhanging uranium markets these days, but Desjardins Securities analyst John Redstone isn’t too worried.
"We expect the uranium market to remain fairly robust over the next few years, and to support a price of roughly US$60/lb," he said in a note to clients.
The analyst discounted a number of issues that are making the rounds, the first of which is the curtailment of nuclear reactor construction due to the global financial crisis.
"Firstly, we do not expect a significant increase in world nuclear reactor capacity through 2010, he wrote. "Consequently, we expect world demand for uranium to increase by only 2.2% in 2009 and 2.1% in 2010.
Mr. Redstone added that many of the nuclear programs, including those in Russia, China and India, that are driving the reactor capacity increases over the next several years are financed by state-backing and therefore likely sheltered from the freeze in credit. Other programs in Japan and South Korea "are conservatively funded and should be able to proceed," he said.
John Polomny
The Real Deal
Loading ...
