Green Shift Commodities Ltd. (GRCMF)

[nyctraydr]

2017 was an extraordinary year for the uranium industry: against a backdrop of steadily increasing nuclear energy generation and uranium demand, the world’s largest and lowest-cost producers cut output to essentially eliminate the oversupply that has dogged the uranium market since the Fukushima meltdown almost seven years ago.

Underscoring the fact that today’s uranium prices are too low for profitable production, the State-run uranium producer in Kazakhstan, that produces 40% of the world’s uranium and is the world’s lowest-cost producer, has set up a trading arm that will allow its uranium to be sold at higher prices.

Production Cuts to Lead to Supply Deficit in the Uranium Market

The latter part of 2017 saw two of the largest uranium producers cut production that should result in supply falling short of demand in 2018 and beyond. In November, Cameco announced a production cut of 13.7 million pounds (“Mlbs”) of uranium in 2018, and a few weeks later, Kazatomprom followed suit with a cut of 10.4Mlbs in 2018 and 9Mlbs in 2019 and 2020. This means that supply will fall by 24.1Mlbs in 2018 – that is 17% of world uranium production.

https://investorintel.com/sectors/uranium-energy/uranium-energy-intel/turning-point-nuclear-industry/