Uranium Week: Near Term Weakness?

This story features PALADIN ENERGY LIMITED. For more info SHARE ANALYSIS: PDN

Despite a positive longer term view, Longview Economics sees a nearer term demand/supply balance leading to uranium price weakness.

-Falling demand for uranium meets growing supply?
-More sanctions imposed on Russia
-Spot market quiet Looking ahead, the cyclical outlook for uranium is deteriorating, Longview Economics believes. In particular, demand has recently been boosted by Japan restarting various reactors, but those plants are all expected to be online within the next several months, resulting in a marginal slowdown in demand growth. More importantly, electricity generation tends to fall during recessions.Given Longview’s expectations for a recession in the US and Europe within the next 6-12 months, the demand outlook for uranium prices is considered relatively poor at this juncture. Likewise, a supply response is coming.In particular, Cameco is reopening its McArthur River uranium mine (the world’s largest) and it […]

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