Uranium Prices Have `Limited Upside’ With Market in Surplus

Bloomberg.com reports supply of uranium will exceed its demand till 2012 with “limited upside” in the uranium market.

Uranium prices have dropped from a record $136 a pound in 2007 as producers increased output. The market returned to surplus in 2009 and will probably stay there until a shortage in 2013 as demand, particularly from China, picks up, Schodde said. Prices may exceed $50 a pound in 2012 and keep rising in 2013, according to the presentation.

Demand is expected to increase by 46 percent over the next decade, mainly driven by China, according to CRU. “China’s propensity for heavy and early stockpiling will also influence the market,” Schodde said in the presentation.

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