The Conversation (0)
Seeking Alpha reports on India and China are building additional nuclear power plants.
Seeking Alpha reports on India and China are building additional nuclear power plants.
The market news is quoted as saying:
It appears almost inevitable that uranium demand from these new and sizable locations will begin to outpace uranium supply, possibly creating dramatic shortages and price spikes to both uranium and the shares of uranium producers.
The year 2010 was a pretty positive year for uranium prices, but since the Japanese nuclear concerns emerged, uranium prices began to face downward pressure. Further, Germany decided to discontinue nuclear plant development and eventually eliminate it as an energy source, both of which hit uranium prices hard. These two nations were previously significant users of nuclear power, and the perceived vacuum to demand weakened the price of uranium and those companies that produce and/or provide it uranium.