S&P 500 Analysis & ETF Trading

[circlem]

The long wait may soon end.

The slow restart process in Japan continues to depress uranium prices, currently $34 a pound and half the pre-Fukushima price. Japan had 50 reactors and all are shutdown pending a safety review on each location.

The 20 year contract with Russia to convert Megatons to Megawatts has ended. Over the last 20 years more than 472 tons of highly enriched Russian uranium has been used to generate electricity in the U.S. This is the equivalent of 18,000 Russian warheads.

The DOE just reported that the last shipment of uranium from the program had been shipped. Now plants in the U.S. will have to increase purchases of uranium on the open market and prices are going to rise. The only thing keeping prices low today is the temporary shutdown of 50 plants in Japan. When those plants begin to come back online there will be a shortage of uranium.

More than 500 reactors either under construction or in the planning stages around the world compared to 453 currently in operation. Uranium demand has nowhere to go but up over the next ten years.